The Bankruptcy of NFLX (Netflix)

Quote from Pekelo:

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 — about three times the stock’s current share price."

Oops!!!
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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...
 
Quote from Pekelo:

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...
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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.
 
Quote from AlsoHuman:

Insiders of NFLX are selling
that's all I need to know
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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
 
Quote from iceman1:

I see NFLX at >100
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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.....
 
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