TiVo Falls On Note Offering; Could Be Good Long (TIVO)

TiVo TIVO announced that it is planning to offer $120 million in five-year convertible senior notes to fund intellectual property litigation and research and development. The stock has lost 3.20% on the news, but are well off their lows for the session. This stock may continue to climb intra-day.

While TIVO's business model may be deteriorating to some degree, investors are primarily concerned with the resolution of litigation between the company and Dish Network DISH and Echostar SATS. A decision is expected shortly. If TIVO wins this litigation, expect the stock to skyrocket. Conversely, a negative decision should push the stock down to the $5-$6 level.