Albert Fried And Company's Rich Tullo Talks Overvalued Tech And TiVo

Rich Tullo, director of research at

, talked

and market weakness recently on

. Tullo isn't nervous over seeing some weakness in the market this month. “I don't think we're heading into anything like a bad market, but a 5 — 7 percent correction is not completely off the table. I think you've got to be very careful about what you're investing in right now and what you're trading in right now,” said Tullo. He thinks “high data” companies like

and

are overvalued. Tullo has a $23 price target for Pandora right now.

“We don't like paying much over 7 times revenue for any stock,” said Tullo. Tullo said that they'll reevaluate the situation as Pandora edges closer to $23. He also has a $23 price target for

. “You can buy stock trading at enterprise value to free cash flow in the single digit range about six times, you know, we think that's a great return for investors…TiVo again, about $60-70 million annuity on their revenue from these longterm contracts they've signed with all the cable companies for the TiVo implementation,” said Tullo. “We think TiVo really benefits from the Comcast

-Time Warner

deal because all these Time Warner subscribers in New York and L.A. will have access to the ability to buy a TiVo box and have Comcast install it for them.”