TiVo Falls 38% After Appeals Court Says It Will Rehear Echostar Case (TIVO)

TiVo TIVO shareholders have to be reeling after seeing the stock plummet through the $11 level on news that a federal appeals court has agreed to rehear a digital-video recorder patent dispute between TIVO and Echostar SATS. In March, the U.S. Court of Appeals for the Federal Circuit upheld a trial judge's decision to hold both EchoStar (SATS) and DISH Network DISH in contempt for infringing on TiVo's DVR patent. The stock has now fallen 37.61% to $10.85. When the original decision was announced in TIVO's favor, the stock shot up from around the $10 level to over $17. After today's activity in the stock, investors can now purchase TIVO for nearly the same price as before the U.S. Court of Appeals decision in March, which is a long way away from being reversed. Look to pick up some cheap TIVO shares or call options, as the risk/reward appears to be skewed upward at this point.