TIVO good buy at $7?

[shummie]

So now that I've been advised away from buying Sirius stock, I've got $1000 in etrade I'd like to get invested ASAP.

Is TIVO a good buy at $7? Their the best product in their "market place" right now. Is there a future for this company. $7 seems cheap.

What do you guys think?

- Jason

[meow_meow]

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.

[Eihli]

i don't know much about investing, but tivo sucks. it's just like webTV. a computer can do anything that tivo can do, but a computer can do it better and can be used for many other things.

[Non_Comformist]

Before you go plowing $1000 into the market I would go ahead and invest $20 in a book where you can learn the differnce between the price per share and the real cost of a stock. $7 is an absolutely meaningless number.

[shummie]

[ QUOTE ]
Before you go plowing $1000 into the market I would go ahead and invest $20 in a book where you can learn the differnce between the price per share and the real cost of a stock. $7 is an absolutely meaningless number.

[/ QUOTE ]

Thanks for the "get a book" advise. It's probably a good idea.

Besides that though, are you saying that I should include a snapshot of a stock's volume, market cap, maybe a 3mo and 1yr chart, etc., before asking for advise? I thought I could assume that the people who would reply already knew about the stock in question (if that hadn't, I don't want them to do research that I could do myself) or had tools available to them to get any info they might need. Though I do realize it is kind of like asking if [PokerStar] was correct in raising 78o on the flop during [WPTEvent]... go ahead and lookup the footage of that event and get back to me.

Regards,
- Jason

[midas]

Don't forget that the cable companies are now imbedding DVRs in the set top boxes. Tivo is an example of a good product with no patent protection and thus no barriers to the competition.

[Non_Comformist]

The cost per share of a stock is meaningless, its how much you are paying for easrnings (current and future) which determines the true cost of a stock,