Dead Company Walking: TiVo

Sometimes it's not enough to be first.

TiVo shook up television when it introduced its digital video recorder (DVR) in 1997.

The technology's taken a while to catch on: only 6% of U.S. homes have one.

But those who have them rave about them.

It's estimated that they'll be in at least 50% of American homes by 2010, but that won't be enough to save TiVo.

DirecTV has begun marketing its own brand of DVR to its customers.

Time-Warner's cable division and EchoStar (Dish Network) are also selling their own versions.

So it's not surprising that the rats are jumping ship: TiVo's co-founder, Michael Ramsey, this past Wednesday announced he's quitting as CEO.

Might as well; sooner's generally better than later with this sort of thing.

The company's stock, as high as $12.93 during the past year, is down 31% for the year, having closed Wednesday at $4.23.

During the past fiscal year, the company recorded an $80.4 million net loss on revenue of $107.3 million.

As you know, I am not a stock market guru or adviser or cheerleader.

But I would like you to take the rest of your chips off the TiVo table, sell what you've still got, and go out and buy yourself something nice with the money.

Sure, you paid a lot more than $4.23 a share for your stock; I know that.

But you have to know when to hold 'em and when to fold 'em.

And this tent's collapsing, so your best bet is outside.

I cannot repeat this often enough: advice is worth precisely what you paid for it.

Refresh my memory, would you?

What, exactly, did you pay here?