Schaeffer's Daily Market Blog

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Friday, April 11, 2008
TiVo (TIVO) Rallies on Federal Appeals Decision
4/11/2008 3:15 PM
Keywords: TIVO

Shares of TV time-shifting guru TiVo (TIVO: sentiment, chart, options) are up more than 1.5% in late trading after the company said that a recent federal appeal against Echostar Holding (DISH) reaffirms the strength of the company's "Time Warp" patent. The ruling denied Echostar's appeal of a lower court's judgment of about $74 million in damages awarded to Tivo.

Technically, the shares are up more than 5% on a year-to-date basis, largely due to the court ruling. However, TIVO hasn't managed to parlay this recent strength into a convincing move above long-term resistance at the 9 level. In fact, the equity has not closed a week above this region since April 2004.

On the sentiment front, investors are trying to call a top to the stock's run higher. TIVO's Schaeffer's put/call open interest ratio (SOIR) of 0.48 ranks above 82% of all those taken during the past year, while more than 20% of its float is sold short. Meanwhile, Zacks.com reports that 7 of the 13 analysts following TIVO rate the shares a "hold" or worse. If the equity can break out above resistance at the 9 level, it could prompt a sharp unwinding of this heavy-handed bearish sentiment, thus sending the stock sharply higher.



-Posted by Joseph Hargett (jhargett@sir-inc.com)