Daily Commentary From SIR Features Netflix.Business Editors CINCINNATI--(BUSINESS WIRE)--Nov. 7, 2003 Today's Daily Commentary From SIR features Netflix (Nasdaq:NFLX NFLX Netflix (NASDAQ symbol) ). Daily Commentaries are market-based reports that provide insight and analysis from a unique and unbiased perspective. For additional information about this report or to have it delivered to you via email everyday click on the following link: http://www.schaeffersresearch.com/addinfo . Checking in on Netflix Online DVD rental Online DVD rentals allow a person to rent DVDs by mail. Generally, all interaction between the renter and the rental company takes place through the company's website. How it works Most companies operate on the following model: An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. investors are selling their early stakes in the company. One firm, TCV TCV Total Contract Value TCV Tokyo City View TCV Treasury Corporation of Victoria (Australia) TCV Temperature Control Valve (Industrial control description) TCV Total Containment Vessel was able to distribute 12 percent of its holdings. As of early September, this group owned 3.569 million shares. However, even with yesterday's decline, NFLX overall picture remains positive. Technically, the shares have fallen below their short-term moving averages. However, a similar pullback Pullback A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum. in late September was an ideal time to enter long positions. After losing more than 14 percent in the three days culminating on September 29, NFLX announced that its third-quarter subscriber total rose 74 percent from the prior year. Click the following link to see the Daily Chart of NFLX since June 2003 with 20-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=8824 . Media sentiment remains quite pessimistic. In fact, no less than four media articles over the past three weeks have cast doubts on NFLX's ability to continue higher. These articles have titles or subtitles sub·ti·tle n. 1. A secondary, usually explanatory title, as of a literary work. 2. A printed translation of the dialogue of a foreign-language film shown at the bottom of the screen. tr.v. such as "Hot Air" and "Still Floating on Froth," suggesting that sideline money may still be available to enter the stock if the uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in continues. (Please read our new Schaeffer's Daily Contrarian for our take on financial news.) On the quantified sentiment front, the backdrop is also somewhat pessimistic. NFLX's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) is at 1.71, signifying that there are 71 percent more open call open interest than put open interest for all options with less than three months to expiration. This is a significantly pessimistic profile, as most stocks have ratios less than 1.0. Click the following link to see the SOIR graph of NFLX: http://www.schaeffersresearch.com/wire?ID=8824 . Short interest also remains robust. Although the number of shares sold short fell last month as short sellers covered their positions, it has remained above eight million shares for six consecutive months. In fact, the recent rally was said to be propelled by significant short covering. However, with only an eight-percent drop in short interest, nearly as many new short positions were put on. From our contrarian perspective, we view this continuing high pessimism bullishly. Click the following link to see the Shares Short graph of NFLX: http://www.schaeffersresearch.com/wire?ID=8825 . |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion