1-Star Stocks Poised to Plunge: TiVo?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital video recorder company TiVo (NAS: TIVO) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at TiVo's business and see what CAPS investors are saying about the stock right now.

TiVofacts

Headquarters (founded)Alviso, Calif. (1997)
Market Cap$1.0 billion
IndustryApplication software
Trailing-12-Month Revenue$260.2 million
ManagementCEO Thomas Rogers (since 2005)
CFO Anna Brunelle (since 2008)
Return on Equity (average, past 3 years)(3.5%)
Cash/Debt$567.3 million / $172.5 million
CompetitorsAT&T
Microsoft
Sony

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 23% of the 1,084 members who have rated TiVo believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star MajorBob04, succinctly summed up the bear case for our community:

Negative PE. This was a great idea and great technology when it originally came out, but many of the cable, TV & satellite companies offer similar services. So they have to cut costs, which means the growth & innovation will slow down, yielding lower revenues and potentially more losses. It's a vicious cycle and will be difficult to escape unless they can come up with another great idea or technology. Or they get bought out.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. The Motley Fool has sold shares of Sony short. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners