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Posted by on Sep 18, 2011 in Markets, TG Roundup

My Battle with Netflix, the Stock!

If you think that pic of Netflix pitchman Jason Alexander is funny, you have to know the jokes that were in circulation about AOL disks arriving mail. One example: 101 uses for all the unsolicited AOL trial disks you received. As I mentioned a couple of months ago on my TORi show, Netflix will implode like AOL did in late 90s and early 2000s. Here is more funny stuff – from Netflix.

 

Either on this board or on Facebook, from time to time I have written something critical about Netflix, the stock. For, I know a thing or two about the business of ‘streaming’ video content. It ain’t as ‘sexy’ as the bulls of Netflix would have you believe. Thanks to my 20+ years of experience in studying things on Wall Street, I also know something about how mo-mo (momentum) stocks behave. But I didn’t really jump into shorting (technically short ’cause I buy puts, never short) until early August.

FYI, this stock traded as high was $305 on July 13, is now down $150 points in just two months. One would think that I made a ton of money especially since I saw this coming. Unfortunately, not! Unlike the week before -the only week in 4 weeks in which I did not have any short position in Netflix – I eked some gains in the face of 39 point decline on Thursday. If I waited for one more day,  i.e. till Friday, Sept 16 – on which Netflix dropped another 14 points to close at 155, down 55 points – my Netflix trades would have been more profitable.

A personal note:

I often get carried away with economic news on my TORi show. I recognize that I may be boring many listeners. This forum is more appropriate to engage in discussion with people of similar interest. I know for a fact that several hundred people are seeing my posts on economy and markets, but hardly anybody is posting any followup comments. I encourage more participation via comments. This is how we learn at least I learn that way!

3 Comments

  1. yep, unless someone is thrown into water how can he/she learn to swim. for many who are living here in US it is imperative they understand the stuff here or else either they will end up robbed or unwittingly to support a wrong cause. any information dissemination is a must to evolve and to survive!

    your past articles showing how much you are into this stuff! thanks for the reference.

  2. Mohan garu,

    I think people are not feeling competent to participate in a discussion here. Some of your articles are very focused on something that many might not be having the wherewithal to make a comment. 🙂

    Please keep posting stuff as you see fit, even if many are in read only mode!

    Thanks!