12:35pm (EST)
The futures were pointing towards a decent open after the better than expected jobless claims report this morning but the gains were limited. Shortly after the market opened, the mortgage delinquencies report came out and it wasn’t as “impressive”.
Homeowners who missed their mortgage payment fell slightly to 4.57% in the second quarter, down from 4.63%, and showed its first drop in four years. Also, the number of homeowners who received their first notice of foreclosure also fell from 1.2% to 1.1%.
Both reports were non-threats to the bears as they have taken slight control of today’s action.
The Dow is down 14 points to 10,046 but has traded in a tight range. The index hit a high 10,104 and briefly gave up its gains after the mortgage numbers but bounced back before succumbing to selling pressure again. Resistance remains 10,200 but is moving lower and the Dow’s upside now looks limited to 10,100-10,200. Lower highs, and lower lows means we are still trending lower, folks.
The S&P is showing a fractional loss and is flat at 1,056 but is still struggling to hold the 1,050 level. The index has traded to a high of 1,060 but looks weak. The Nasdaq is down 3 points to 2,138 and will lead the way lower or higher for the rest of the session.
Turning to earnings, TiVo (TIVO, $8.19, down $0.24) is down 3% after beating Wall Street’s expectations but they still reported a loss for the quarter. The company reported a loss of $15 million, $0.13 a share, versus a loss of $3 million, or $0.03 a share in the year ago quarter. Analysts were looking for a loss of $0.15 a share.
TiVo did say some good things as sales of its new Premiere DVR recorder has been a hit with die-hard customers. It was the first quarter in three years that sales of TiVo’s equipment through retailers have increased.
The company has been locked up in litigation battles over patent disputes and TiVo fell hard after receiving an unfavorable ruling in mid-May. Shares fell from $17 to $10 that day but the fight isn’t over. We have covered TiVo for a few years and we think they have a good argument.
We also think TiVo is an attractive takeover candidate and the rumor mill has Apple (AAPL, $243.85, up $0.96) making a pitch for the company.
Apple will do a show-and-tell update at the beginning of September and many expect them to update their iPods, which could include an iPod Touch with a camera. Other chatter is that the company will update its plans for the Apple TV with could include an App Store. No more cable bill? Buy the shows you want to see for a buck? We’re down. There could be some “cloud-based” services offered by Apple as well.
TiVo has the best DVR product on the market and an updated Apple TV box would benefit from TiVo’s technology as Apple maps its next course of dominance.
The grape vine is always full of interesting stories but TiVo should survive with or without Apple. The cable companies still could end up paying TiVo but as the litigation process drags, so will TiVo’s shares until some good news comes out.
We have updated all of our current trades in our members Area and we will be back Friday morning with a fresh update.
Tags: AAPL, option picks, stock options trading, TiVo
This entry was posted
on Thursday, August 26th, 2010 at 12:36 PM and is filed under Apple, Company Commentary, Market Analysis.
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Apple (AAPL) Products Update Coming
12:35pm (EST)
The futures were pointing towards a decent open after the better than expected jobless claims report this morning but the gains were limited. Shortly after the market opened, the mortgage delinquencies report came out and it wasn’t as “impressive”.
Homeowners who missed their mortgage payment fell slightly to 4.57% in the second quarter, down from 4.63%, and showed its first drop in four years. Also, the number of homeowners who received their first notice of foreclosure also fell from 1.2% to 1.1%.
Both reports were non-threats to the bears as they have taken slight control of today’s action.
The Dow is down 14 points to 10,046 but has traded in a tight range. The index hit a high 10,104 and briefly gave up its gains after the mortgage numbers but bounced back before succumbing to selling pressure again. Resistance remains 10,200 but is moving lower and the Dow’s upside now looks limited to 10,100-10,200. Lower highs, and lower lows means we are still trending lower, folks.
The S&P is showing a fractional loss and is flat at 1,056 but is still struggling to hold the 1,050 level. The index has traded to a high of 1,060 but looks weak. The Nasdaq is down 3 points to 2,138 and will lead the way lower or higher for the rest of the session.
Turning to earnings, TiVo (TIVO, $8.19, down $0.24) is down 3% after beating Wall Street’s expectations but they still reported a loss for the quarter. The company reported a loss of $15 million, $0.13 a share, versus a loss of $3 million, or $0.03 a share in the year ago quarter. Analysts were looking for a loss of $0.15 a share.
TiVo did say some good things as sales of its new Premiere DVR recorder has been a hit with die-hard customers. It was the first quarter in three years that sales of TiVo’s equipment through retailers have increased.
The company has been locked up in litigation battles over patent disputes and TiVo fell hard after receiving an unfavorable ruling in mid-May. Shares fell from $17 to $10 that day but the fight isn’t over. We have covered TiVo for a few years and we think they have a good argument.
We also think TiVo is an attractive takeover candidate and the rumor mill has Apple (AAPL, $243.85, up $0.96) making a pitch for the company.
Apple will do a show-and-tell update at the beginning of September and many expect them to update their iPods, which could include an iPod Touch with a camera. Other chatter is that the company will update its plans for the Apple TV with could include an App Store. No more cable bill? Buy the shows you want to see for a buck? We’re down. There could be some “cloud-based” services offered by Apple as well.
TiVo has the best DVR product on the market and an updated Apple TV box would benefit from TiVo’s technology as Apple maps its next course of dominance.
The grape vine is always full of interesting stories but TiVo should survive with or without Apple. The cable companies still could end up paying TiVo but as the litigation process drags, so will TiVo’s shares until some good news comes out.
We have updated all of our current trades in our members Area and we will be back Friday morning with a fresh update.
Tags: AAPL, option picks, stock options trading, TiVo
This entry was posted on Thursday, August 26th, 2010 at 12:36 PM and is filed under Apple, Company Commentary, Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.