TiVo jumps on Apple buyout rumor

TiVo (TIVO) stock jumped 17% Wednesday and is up over 4% today on speculation that Apple (AAPL) may buy the struggling company. While outgoing CEO Mike Ramsey has said the company is "not for sale," TiVo's small market cap ($354 million) makes it an easy target for any company looking to gain a foothold in the market.

While I really like the company, I think a buyout is unlikely, and (in the absence of such a buyout) the stock is not a good candidate to buy, and almost a good candidate to short. If I were fairly certain of a buyout, I would more carefully consider TiVo, but it looks like much of the speculation has already been priced into the stock with the recent run-up. Barring a rescue from a company with deep pockets (like Apple), prospects for the company do not look good. TiVo continues to lose money, and top executives are leaving the company in droves. Barring a turnaround or a buyout, I would not recommend TiVo stock.