Down another 7%, dipped below $63 today for a while. "Has Netflix overextended itself?" http://gigaom.com/video/netflix-400...eed&utm_campaign=Feed:+OmMalik+(GigaOM:+Tech) " Instead, Netflix spent nearly $200 million on buybacks, at an average price of $222 per share â about three times the stockâs current share price." Oops!!!
There's plenty of NFLX articles at Seeking Alpha. Many of them have pointed out the "brilliance" of NFLX's management's decision to buyback stock at prices above $200, only to sell stock at $70 a few months later. Here is one such article: http://seekingalpha.com/article/310076-netflix-bizarre-george-costanza-moves "Netflix: Bizarre George Costanza Moves""
Yeah, I have been reading them in the last hour. Here is one making the bankruptcy case: http://seekingalpha.com/article/298845-why-netflix-could-be-bankrupt-within-a-year "I fully expect the price of Netflix to keep falling, and I'm staying short. Len Brecken was laughed out of the room 6 months ago for suggesting Netflix could see bankruptcy and a sub-$5 stock price by the end of 2012. Looking at the financials, it's hard to see how that's avoided." Personally, I don't think NFLX's business model was ever viable. Maybe back then when they charged $20 per month for shipped DVDs...
RedBox is eating their lunch I think, getting exclusive deals at Wal-Marts and other vendors. Guess I'm the foolish one for keeping both services at $15/month.
"Text-S&P downgrades Netflix to BB-" www.reuters.com/article/2011/11/28/idUSWNA452820111128 -We are lowering our corporate credit rating on the company to 'BB-' from 'BB' with a stable outlook.
How do you know that? All I see are a bunch of option exercises at $1.50 a share. Does that signify insider selling?
I see NFLX at >100 shorts are going to get nailed! just a hunch. Of course I just sold my 125, 100 and 85 puts on NFLX. You do the math! lol Now long strangle
I expect a bounce to 80, but I don't think 3 digits is in the works. Around 80 is a good place to load up on puts.....
Wedbush downgraded it with a $45 price target. Stock fell to $63..... http://seekingalpha.com/article/311011-a-look-inside-wedbush-s-downgrade-of-netflix?source=yahoo