Comments on: TiVo Puts Investors In Suicide Squeeze Play http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/ Thu, 04 Mar 2010 00:12:30 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Zatz Not Funny!»Blog Archive » TiVo Takes Out $50 Million Marker, Adds Board Member http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-17449 Zatz Not Funny!»Blog Archive » TiVo Takes Out $50 Million Marker, Adds Board Member Sat, 27 Jan 2007 14:40:26 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-17449 [...] With $78 million in cash and another $28 million in short term investments, I somehow doubt that TiVo will ever make heavy use on this line of credit, but it’s mere existence should help to reassure nervous shareholders. I think that a lot of the doom and gloom on TiVo has been overdone, but with most of the analysts pretty dour on TiVo’s prospects, access to another $50 million in cash should help to soothe investors who have been concerned about TiVo’s near term ability to survive. Previously, Citigroup had helped TiVo to raise $65 million in a secondary stock offering and the extension of their line of credit serves as a indication of their commitment to helping TiVo succeed. [...] [...] With $78 million in cash and another $28 million in short term investments, I somehow doubt that TiVo will ever make heavy use on this line of credit, but it’s mere existence should help to reassure nervous shareholders. I think that a lot of the doom and gloom on TiVo has been overdone, but with most of the analysts pretty dour on TiVo’s prospects, access to another $50 million in cash should help to soothe investors who have been concerned about TiVo’s near term ability to survive. Previously, Citigroup had helped TiVo to raise $65 million in a secondary stock offering and the extension of their line of credit serves as a indication of their commitment to helping TiVo succeed. [...]

]]> By: Davis Freeberg’s Digital Connection - TiVo Takes Out $50 Million Marker - Don’t Worry It’s From Citigroup Not Tony Soprano http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-17357 Davis Freeberg’s Digital Connection - TiVo Takes Out $50 Million Marker - Don’t Worry It’s From Citigroup Not Tony Soprano Sat, 27 Jan 2007 00:01:53 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-17357 [...] With $78 million in cash and another $28 million in short term investments, I somehow doubt that TiVo will ever make heavy use on this line of credit, but it’s mere existence should help to reassure nervous shareholders. I think that a lot of the doom and gloom on TiVo has been overdone, but with most of the analysts pretty dour on TiVo’s prospects, access to another $50 million in cash should help to soothe investors who have been concerned about TiVo’s near term ability to survive. Previously, Citigroup had helped TiVo to raise $65 million in a secondary stock offering and the extension of their line of credit serves as a indication of their committment to helping TiVo succeed. [...] [...] With $78 million in cash and another $28 million in short term investments, I somehow doubt that TiVo will ever make heavy use on this line of credit, but it’s mere existence should help to reassure nervous shareholders. I think that a lot of the doom and gloom on TiVo has been overdone, but with most of the analysts pretty dour on TiVo’s prospects, access to another $50 million in cash should help to soothe investors who have been concerned about TiVo’s near term ability to survive. Previously, Citigroup had helped TiVo to raise $65 million in a secondary stock offering and the extension of their line of credit serves as a indication of their committment to helping TiVo succeed. [...]

]]> By: davis http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-550 davis Thu, 07 Sep 2006 20:10:09 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-550 My problem with this latest move isn't the poison pill per se. Without it, investors may have received a short term pop, but it was only a matter of time that they would have been bought out. If Cisco was willing to pay 3.5 billion for Scientific Atlanta, coming up with a billion for TiVo wouldn't have been that hard. The real problem is that with cash running out, TiVo was beginning to face some necessary economic pressures to make sure that they start making money instead of losing it. By selling at these low prices, it not only dillutes shareholder equity, but it also buys TiVo another 2 years of being able to lose money without being held accountable for it. Without the pill, we could see someone concentrate their position and take better control over these management decisions, but with the poison pill, TiVo management is able to make these types of bonehead moves without having to be held accountable to anyone. My problem with this latest move isn’t the poison pill per se. Without it, investors may have received a short term pop, but it was only a matter of time that they would have been bought out. If Cisco was willing to pay 3.5 billion for Scientific Atlanta, coming up with a billion for TiVo wouldn’t have been that hard.

The real problem is that with cash running out, TiVo was beginning to face some necessary economic pressures to make sure that they start making money instead of losing it. By selling at these low prices, it not only dillutes shareholder equity, but it also buys TiVo another 2 years of being able to lose money without being held accountable for it. Without the pill, we could see someone concentrate their position and take better control over these management decisions, but with the poison pill, TiVo management is able to make these types of bonehead moves without having to be held accountable to anyone.

]]> By: snarkolepsy http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-547 snarkolepsy Thu, 07 Sep 2006 19:10:37 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-547 Tivo is a perfect example of how so promising can be run so badly. I think they actually have a division that sits around all day trying to figure out to to screw up the company. The poison pill was probably instituted because someone brilliant in the company said " we don't know how to run this company, so maybe we should make it so someone can't steal it from us, because we are incompetent imbeciles". I was in early on, and made barely anything, and went back in before last earnings. But... it was a suicide play. Sometimes I like that sort of thing. They are a half a billion in debt, and tell you flat out they may never become profitable. Duh... really.. shocking... not. Tivo is a perfect example of how so promising can be run so badly. I think they actually have a division that sits around all day trying to figure out to to screw up the company. The poison pill was probably instituted because someone brilliant in the company said ” we don’t know how to run this company, so maybe we should make it so someone can’t steal it from us, because we are incompetent imbeciles”.

I was in early on, and made barely anything, and went back in before last earnings. But… it was a suicide play. Sometimes I like that sort of thing. They are a half a billion in debt, and tell you flat out they may never become profitable. Duh… really.. shocking… not.

]]> By: TiVo Blog » Blog Archive » TiVo News I Haven’t Had Time To Cover http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-522 TiVo Blog » Blog Archive » TiVo News I Haven’t Had Time To Cover Thu, 07 Sep 2006 01:49:58 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-522 [...] TiVo Puts Investors In A Suicide Squeeze Play: Good read especially if you invest in TiVo stock. [...] [...] TiVo Puts Investors In A Suicide Squeeze Play: Good read especially if you invest in TiVo stock. [...]

]]> By: Zatz Not Funny. . .»Blog Archive » Interesting News Dave Hasn’t Covered http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/comment-page-1/#comment-509 Zatz Not Funny. . .»Blog Archive » Interesting News Dave Hasn’t Covered Wed, 06 Sep 2006 18:09:39 +0000 http://davisfreeberg.com/2006/09/06/tivo-puts-investors-in-suicide-squeeze-play/#comment-509 [...] TiVo puts investors in suicide squeeze play. (Davis Freeberg) [...] [...] TiVo puts investors in suicide squeeze play. (Davis Freeberg) [...]

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