Re: TIVO good buy at $7?
Two things about tivo.
1. Their core business (the TV recording thing) is in the process of being hugely undercut by lower cost generic recorders. This is very bad.
2. They have entered into a partnership with netflix to deliver movies to customers electronically. Possibly a plus down the line, but the VOD market is not without competition either. This news has already bumped tivo off its low of $4.
Further, Tivo didn't make a profit last year, won't make a profit this year, and isn't forcast to make a profit next year. The have a bit of cash, but with negative cash flow and virtually no book value, tivo seems speculative at best.
If you are looking to gamble, then fire away. If you are looking to invest, then look elsewhere.
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