We went 0-for-1 in terms of our earnings predictions last week, which led to small loss of 2%. This brought our year-to-date return for this newsletter in 2013 down to 255%.
We said TiVo (TIVO) had a great product but lousy financial management because the company has never made a dime. We did not think TIVO had a shot in England of hitting loss estimates for ($0.13) per share this quarter. We were wrong but we have not changed our opinion on shorting this stock, which gained 2% for the week. Despite a 22% increase in revenue to $82 million, TIVO posted a huge net loss of ($10) million, or ($0.09) per share. The only reason TIVO beat the loss estimate was a large increase in share count to 121.4 million (an increase in shares lowers the loss per share). That gives TIVO a market cap of $1.6 billion, or five times sales, which is ridiculous for a company that never makes any money. Management gave guidance for the next quarter of service and technology revenues in the range of $68 – $70 million, and another net loss of ($13) – ($16) million. Why is this company even public?
Following is the table for the week ahead:
Get the full research report:
- Author: Thomas Byrne, Analyst
- Pages: 8
- Purchase Price: $50.00
- Companies Mentioned In This Report: WET SEAL (WTSL), HAWKINS (HWKN), NAVARRE (NAVR), PALL CORP (PLL), SIGMA DESIGNS (SIGM)
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