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Time to Short Tivo Again?

|Includes: TiVo Inc. (TIVO)

Back in July I criticized rumors of a Tivo acquisition and recomended a short on the stock. Indeed, the stock ran all the way down near the $7 mark in August before rebounding sharply with the broader market and good earnings. The chart:

Tivo Chart
The stock is now once again at resistance around $11 -- is it time to short again?

Second quarter earnings beat guidance, but they still represented a net loss of $17 million, and third quarter guidance includes guidance of a loss of $27-$29 million. It's very possible Tivo will repeat the pattern from May-July, where it dived quickly once the enthusiasm faded. No doubt the recent rally was in part aided by short covering, so the question going forward is where the buying momentum will come from, at least until Tivo announces that it's lost more money.

Disclosure: No positions, no positions will be entered Thursday or Friday.