Stocks in the News: Don't Tase Me Bro!

Posted: Aug 29, 2013 12:01 AM
Stocks in the News: Don't Tase Me Bro!

Stock number one is: 

TiVo Inc., (SYMBOL: TIVO) and the headline says: TiVo posts profit after patent lawsuit settlement -- Reuters

Television technology company TiVo Inc. reported a profitable second quarter, supported entirely by litigation awards vs. Motorola Mobility and Cisco.  Excluding unusual items, the company had a smaller quarterly loss that Wall Street expected, and revenues were up 53% year-over-year.  After many years of net losses, CEO Tom Rogers expects to report profitable quarters from here on out, aided by the successful litigation, which resulted in prospects of both increased licensing revenue and cash resources.

TiVo stock is trading sideways between $10.50 and $12.  Aggressive growth investors with a long-term horizon might eventually be rewarded by owning TiVo shares.

Our Ransom Note trendline says:  HOLD TIVO.

TIVO Chart

TIVO data by YCharts

Stock number two is: 

Zale Corp., (SYMBOL: ZLC) and the headline says: Turnaround Progress Continues to Be Apparent – Citi Research

Jewelry retailer Zale Corp. saw its stock jump today after reporting a smaller-than-expected fourth-quarter loss.  The company showed improvements in revenue, gross margin, products, inventory, marketing, and debt levels.

After multiple years of net losses, Zale is expected to earn a profit this year, followed by aggressive earnings growth in the next two years.

The stock price crashed with the 2008 Financial Meltdown, and didn’t begin to recover until May of this year.  While the chart is bullish, the shares are tremendously overvalued.  Current shareholders should use stop-loss orders.

Our Ransom Note trendline says..... HOLD ZALE CORP.

ZLC Chart

ZLC data by YCharts

Stock number three is:

TASER International, Inc., (SYMBOL:  TASR) and the headline says: Taser stock on a stunning tear -- CNN Money

TASER International, maker of electronic control devices used in law enforcement, saw its shares fall a bit today after a 35% price run-up in the last two weeks.  Police departments around the country are ordering TASER’s Axon wearable video cameras, causing investor excitement around the company’s earnings growth prospects.  The cameras not only aid officers on traffic stops and crime situations, but have proven to dramatically decrease the use of force, and civilian complaints in those situations.

Earnings are expected to grow 15, 19, and 24 percent over the next three years.  The PE is high at 36.

It’s probably too late for new investors to catch the recent run-up.  Expect the stock to trade in the $10 - $12 area in the near future.

Our Ransom Note trendline says....  HOLD TASER.

TASR Chart

TASR data by YCharts

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.