CBS story sends Tivo soaring


A generally positive story on personal video recorder developer Tivo sent the company's shares up sharply Monday.

Tivo's stock at one point lept from $4.05 last Friday 65% to $5.88, before settling back to $5.09, a 25% gain on the day. The story was a rare puff piece for 60 Minutes's correspondent Mike Wallace that described in detail something that the company itself hasn't done effectively: how time-shifting telelvision programs easily could transform how consumers use TV. Still, Tivo's stock has dropped sharply since it came public last year.

The company is burning cash at the rate of $17.3 million a month, or more than $200 million a year, has about $175 million in the bank and takes in revenue of just $1 million a month. - John Higgins