New Way to Invest.

I wanted to tell you about a interesting way to invest a few bucks. The name of the website is Prosper.com. It is a peer-to-peer lending community, where you choose loans to "bid" on. There are tons of listing to choose from, so I use ProsperPicks.com to narrow down the selections. Give it a try.

Looking for value? Look at TIVO.

TIVO … rarely does one word mean so much. It represents one of those rare occasions when the brand defines the product (like “Q-Tip” did for cotton swabs or “Coke” did for soft drinks). Did you know that a TIVO is actually a type of digital video recorder or DVR? On top of this, users have a cultish loyalty to their TIVO. Never, and I do mean NEVER would a TIVO user change to a competing product. Even Microsoft’s foray into DVR’s with ReplayTV was a failure. Go ahead ask a TIVO user how they feel about their TIVO. You will inspire an impassioned soliloquy about how TIVO has reinvented television much the way color did decades ago.

So why is it that most people would pay more for a used Q-Tip and a warm Coke than they would for a share of TIVO stock? I think it comes down to management. Speaking of brands with a cultish following, Apple’s iPod has just such a rabidly loyal consumer base. Yet that brand has single handedly raised the fortunes of struggling company. According to Interbrand’s annual survey, Apple’s brand value increased 23.7% to 6.9 billion… with a B. Poor TIVO on the other hand has managed to allow their market cap to dwindle to $285 million.

Again, the only explanation that I can determine is management. So hopefully, the “resignations” of both the president and the CEO will be a step in the right direction to developing the incredible potential that I think this stock holds. In the near term I expect to see one of the large cable companies or satellite providers to add this valuable brand to their stable (are you listening Rupert Murdoch). They could also learn something from TIVO in terms of functionality (are you listening Cox Communications). If however, the company continues on its own, I think the sky is the limit with the right management team. Either way TIVO offers tremendous value for investors at its current valuations. I will and am buying this stock in the $3 to $5 range.

I will not buy SIRIUS

I am sick and tired of hearing about Sirius Satellite Radio (Symbol: SIRI). Personally I think the stock sucks for the near term.

Many who have emailed me are operating on the premise that Sirius stock is at 6.65, and XM Satellite Radio (Symbol: XMSR) is 37.17. Well then, Sirius must be undervalued…Right?

NO…NO…NO…

You MUST consider the market cap.

Sirius – 8.4 Billion

XM – 7.6 Billion

AND…XM has twice the subscribers! Who is undervalued now?

Warren Buffett is a man after my own heart.

If you haven’t read an article by Warren Buffett you are really missing something. His wit and candor are truly a pleasure to read. In a fairly recent editorial that was published in the Washington Post he lambastes congress for encouraging the use of fuzzy math to account for corporate stock options. He also highlights the thinking that is so prevalent among lawmakers, but would be illegal for common citizens.

Click here for the article.

Welcome!

One of my favorite things to talk about is finance. I love to hear a good money making idea, or a good stock tip. Please send me your investment ideas, and I will try to post them. Then please try to comment as frequently as you can. I love to get different perspectives on the feasibility of an idea. Thank you for your help.