Good news for TiVo (TIVO); H&R Block (HRB) and Mattel (MAT) shares are rising.
TiVo (TIVO – yield 3.9%) An administrative law judge with the U.S. International Trade Commission made a final initial determination that Comcast (CMCSA) is in violation of Section 337 of the Tariff Act of 1930, pertaining to unfair trade practices, in two of TiVo’s six patent infringement cases against the company. A final ruling is expected in late September, but Comcast could decide to settle in the interim. (Additional cases are pending in U.S. District Court.)
TIVO is up 12% today at about 2 PM ET. The stock could realistically reach 19.5 before having a pullback.
TIVO is a very undervalued growth stock, regardless of the patent infringement case outcome. I’d also like to point out that TIVO’s market cap is about $2 billion—tiny vs. technology and entertainment giants that might want to acquire the company.
Buy the stock, collect the large dividend, wait out the volatility, and I think you’re going to reap outsized capital gains over the next six to 24 months. Strong Buy.
H&R Block (HRB – yield 3.3%) had a quick price correction and recovery after it rose to 27 in May. The price chart currently looks bullish for the run-up to continue. The company is due to report full-year results on June 13. Keep in mind that when a stock has a run-up just prior to an earnings report, the price often falls when the earnings are announced, no matter whether the results are good or bad.
I intend to sell HRB prior to June 13 because the growth outlook is no longer compelling. Hold.
Mattel (MAT – yield 6.7%) is definitely rising. Growth investors, dividend investors and traders should buy now. Buy.