Robert Leggett
Can anyone intelligently explain Netflix right now? Chris brought something to my attention about their working capital that I thought would lead to skepticism about the price but it seems like there is something else I am not understanding. I got lucky and thought they were undervalued based on their historical prices and bought at $66.something. I don't know...trader collusion?
2012-01-27 15:41:44 · Share · Tweet
  • Toronto Bill
    a lot of contentious information... hard to figure out. Either a broken business model with questionable future, Or a decent opportunity, with expanding market.
    I would say unless you have to trade this....avoid it.
    I tend to fall on the broken business model side. NFLX doesn't own content...so some think a Sony Paramount or Disney who actually own the stuff could implement an online streaming service in a week and cut out the Netflix'. Also Youtube or a few others are already doing the same thing. Lastly, up here in Canada 'home of bandwidth throttling' Netflix was forced to chop the quality of the movies to maintain watchable service.
    Rocco Pendola (sp?) is an iconic writer of 'all things short NFLX'
    Have to say i'm considering a new short at these values.
    2012-01-27 17:54:21
  • Toronto Bill
    Sorry, left out the 'where' part -On www.seekingalpha.com
    2012-01-27 17:59:06
  • Chris Lau
    Right now your position proved the correct one Robert. Fundamentals speak for themselves for $NFLX but that does not necessarily mean money will be made. There are all sorts of traders who used fundamentals in this case to build a short position. Momentum and moderate good news created a short squeeze and the bearish bets had to be covered.
    2012-01-28 04:55:18
  • Robert Leggett
    It might be time to move on with this one and put in a stop close to market value. Thanks for the input.
    2012-01-29 17:07:06