4-18-2012 watchlist
A great RAMP day yesterday. Just like what I wrote about Monday, we needed a few day CLEANSING of the bulls. Needed to shake people out, and get the shorts happy in the hopes of their 10%+ correction, then pull the carpet out.
All posts by jimmybob
NetFlix(NFLX) – Banking coin on the calls
Having the guts to buy something when everyone else is selling, can be a very stressful occupation. But when you are right, it can be VERY REWARDING. Take a look at what we said about NetFlix(NFLX) in our chatroom and watchlist Sunday night and Monday:
NFLX – Earnings next week. I think folks have the story wrong with the competition. Expect a ramp to $115-$120 by friday. Play accordingly
| 04-16 01:36:08 | Message | jimmybob | Option Millionaires Live | NFLX gonna run like a beast soon... ill have my write up maybe later tonight.. still have jet lag |
| 04-16 12:20:23 | Message | jimmybob | Option Millionaires Live | opentrade NFLX 110 calls 25 @ .30 avg |
Today the stock closed at 107.02, and the $110 calls closed at $.93. Having the guts to go against the grain provided us with a 300% move so far. The real fun begins when NetFllix(NFLX) breaks $110 this week. We have written about Netflix(NFLX) a few times in the past month or so, and think folks have this stock wrong at the moment.
Lets see what tomorrow brings...
Origin Agritech Ltd. (SEED) – Starting to sprout?
It was a little more then two weeks ago, that we wrote about Origin Agritech Ltd (SEED). Since then, the stock has faded under $2 on decreasing volume. That changed this afternoon as a filing hit the wires showing the new CEO has continued buying up shares and now holds over 19% of the outstanding shares.
We will find out tomorrow whether this is the news that sprouts new life on the stock or just a short lived pop. Either way, we like a stock where the CEO is locking up shares... especially one trading near its 52 week low.
Keep Origin Agritech Ltd. (SEED) on watch for the rest of the week.
NetFlix (NFLX) : Bears are wrong…
Its very easy to jump on the "NetFlix sucks" bandwagon. Sure the CEO made a serious blunder splitting the digital and hard copy business, while also raising prices. Sure they made the mistake of buying back stock at the top, only to issue stock near the low to finance operations. And yes, it seems every day there is new competition to NetFlix(NFLX). But here is what folks should be asking themselves: "Who is truly their competition?"
Is it the fellow streaming services that are popping up everyday like Amazonand their 'Prime' offering, which just became available on the Playstation 3? Maybe it's the cable companies and satellite providers? Maybe the Kiosks like Redbox, or the DVD to digital service Walmart just started?
Do people cancel the subscription to Netflix(NFLX) because of any of the services listed above? I actually think NetFlix(NFLX) is a complimentary service. I have most of the services above, and never think to cancel my Netflix(NFLX) subscription. If i want to watch a movie i check Netflix(NFLX) first, then check Amazon, and then may buy it on Itunes if those services dont have it. The $7.99 per month price tag is something I hardly notice on my credit card statement. Maybe I am wrong, but I think NetFlix is still a growth story, and I think Monday's earnings will reflect that.
NetFlix is currently trading at $104 as I write this, and think she gets some legs this week as folks start to get ahead of the earnings announcement next week. We currently hold the April $110 calls purchased at .29.
4-17-2012 Watchlist
4-17-2012 watchlist
Some Decent earnings from Coke, JnJ, and Goldman Sux should help prop the market today. Too many people calling for AAPL to sell off now, so that means it goes back over $600 in short order, although there are rumors Imac and notebook sales struggled last Q. READ ON (Subscribers Only)