This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Cash-Burning Stocks to Extinguish From Your Portfolio


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The past few years have presented a challenging environment for TiVo (TIVO - Get Report). The firm that pioneered the DVR has seen the value of its shares get halved from their 2010 highs, after ongoing legal drama promised to change the firm's fortunes and then reversed again.

I almost don't like adding TiVo to this list. in a way, it's sort of like kicking a company while it's down. But there's a silver lining to be had in this stock.

>>5 Stocks Everyone Hates -- But You Should Love

First of all, TiVo is burning cash. The firm's annualized burn rate comes in at an annualized $114 million. While cash balances increased dramatically after a series of legal settlements that will provide a series of payments through 2018, the firm is still fixing a hole in its gas tanks by dumping a bunch of gas into them. Once that supply runs out, investors will be out of luck. And that's a real problem given the bargain price that TiVo is trading for.

Net of debt, the firm's cash position and locked-in legal payouts cover the majority of TiVo's market capitalization. So assuming that the firm's remaining business is worth anything, investors are getting a bargain. Management just needs to shed unproductive products and start returning some of those huge cash reserves to shareholders.

While I'd recommend getting rid of TiVo before management spends all of its loot, this stock does have turnaround potential if the powers that be can figure out an effective way to plug the profitability holes and give the company's owners some of that cash.

For another take on TiVo, it was also featured last month in " 5 Stocks Set to Soar on Bullish Earnings."
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BG $60.59 -2.38%
NOK $5.69 -1.22%
P $9.34 0.65%
RCL $75.61 -0.38%
TIVO $9.59 -0.83%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs