Down goes the Dow

Huh?? wrote:

Ghost of Igloi wrote:

Yes Jim Bull you can be the proud owner of a company hemoraging $Billions. Even better if you buy at the high.

According to your most recent link, their earnings are going through the roof.

Let's be realistic here.

Was there improvement in earnings? Yes, 2 cents better than what the street was expecting.

Does the earnings improvement come with a cost? Yes, the company has added $3 billion in debt over the past year.

But content is an asset isn't it? Yes, the content is an asset but an asset with a shelf life, so additional content has to be continually be created to generate the same growth.

Is their business model any different than other companies funding expansion through debt? No, it is no different than companies expanding through other product offerings or an expansion of distribution.

Then what is the beef? A good company and a good investment are two different things. NFLX trades at 335 times last year's earnings. What happens if the cost of funding content goes up? What if the Street questions whether the company's growth cannot keep up with the financing of debt? The senior debt holders sit at the top of the corporate finance structure and equity holders at the bottom.

Igy

Huh?? wrote:

"According to your link, their revenues went from $6.8B in 2015 to $8.2B TTM. That's a 20% increase in one year! And they've been going up hundreds of millions of dollars per year for awhile now. Profits too!"

Igy Answer:

OK, revenues went up $1.4 Billion, debt went up $2.9 Billion. So each additional dollar of revenue cost them over a dollar.

Huh?? wrote:

"Your post is full of "ifs", but you forgot one: What if revenues and profits continue to increase as they have for years? Given the millions of new subscribers they are adding, why wouldn't they?"

Igy answer:

Perhaps, but currently the finances are clear, the cost to grow is greater than the growth.

Huh?? wrote:

"Also, this kind of content does not have a shelf life."

Igy answer:

Good point, I watch "A Team" re-runs all the time.

Huh??,

That is the Bull case. Hope it works out for investors.

"You are not alone...

'The series has achieved cult status through heavy syndication in the U.S. and internationally. It has also remained popular overseas, such as in the United Kingdom, where the show has been on-air almost continuously in some form since it was first shown in July 1983.'"

Mr. T is my favorite character. "Pitty the fool."

Igy

[quote]Jim Bull wrote:

And you can continue to cherry pick data

You are a source of endless cliches that add nothing to any conversation.

Didn't your Mom love you?

Certainly not the wise sage Detector Dude.

While Igy's use of his snapshot alone in deciding to NOT BUY N is legitimate, there is an asymmetry: that same snapshot alone should not be used to decide TO BUY N, without more and deeper information.

Clearly the recent debt is used for more than raising recent revenues. Yes the content is an asset, but there are other business assets into which it can also go.

To make a decision to buy any individual stock with such a high P/E, you better make sure that you have a deep understanding of business operations.

I still maintain that the A and N in FANG might be good buys, because they actually do something. G is probably in that category now with their phones and fiber networks.

The high current price is justified by the anticipation of future returns, or increasing value through space domination and market share.

K5 detector wrote:

Hi, K5/Igy! Only 1 minute between posts using different handles? You're not fooling anyone!

I wonder is there is some way we can benefit from Detectors delusion that he knows what he is talking about?

Perhaps a bet? Maybe some moderator can tell him if Igy and I are one in the same or not?

How about it Detector? Put your money where your mouth is?

Talk about training, yesterday I had to deal with the gov't regarding property classifications and taxation. Remember that I'm an attorney, and understand the mechanism of the law. Dealing with those people was so trying that I had to go for a run afterwards...did 5 miles in 30 minutes with no warmup, and with a good elevation gain.

I thought that would calm me down, but it only served to fuel the fire.

The only solution to gov't is to have less of it. By its nature, gov't cannot do anything efficiently, or even at many times effectively.

To wit:

http://www.wsj.com/articles/student-debt-payback-far-worse-than-believed-1484777880

Dept of Ed says it was due to a "technical programming error"...

...of course they don't address the more important issue: To what was the error due?

Hey agip, you still believe what you hear from gov't?

Yo Yo Pa wrote:

K5 detector wrote:

Hi, K5/Igy! Only 1 minute between posts using different handles? You're not fooling anyone!

I wonder is there is some way we can benefit from Detectors delusion that he knows what he is talking about?

Perhaps a bet? Maybe some moderator can tell him if Igy and I are one in the same or not?

How about it Detector? Put your money where your mouth is?

Yes and perhaps we can also chip in for an evaluation by psychologist.

SHORT AMD!!!!!!

Maserati,

Of course your analysis of both AMZN and NFLX is the Bullish excuse for paying up for a unit of earnings. One thing I can assure you about, the rising price of both stocks has far exceeded the increase in earnings.

In regards to running and frustration, you probably lowered your blood pressure, while getting in a very good run. Interestingly we routinely have to explain to the Office of Veterans Affairs that proceeds from a sold investment is not income.

Igy

SpeedDemon8956 wrote:

SHORT AMD!!!!!!

No. Long Valium drug maker, both for the Mnuchin hearing and Detector Dude....

I make no bull case for N or A. Over a year ago I said that if I were to buy any FANG, it would be A and N...but I also said that I would never buy any individual stock, because of the virtual impossibility of knowing enough about business operations.

I stand by that, and have purchased no individual stocks. But again, there is an asymmetry: I have shorted individual stocks, and would do so again. The asymmetry exists because the environment in which a company operates is much bigger than the company itself.

Being consistently wrong is relative to time. Twenty-one months ago the stock was at $59, four years ago the stock was at $14. Not ancient history. Nothing in the recent earnings report of this company says it cannot go there again.

two standout bullish econ readings today - suggesting strong acceleration out there

jobless claims 4 wk average plunges to new cycle low

philly fed shows strong acceleration there.

So obama exits with the economy moving forward strongly. Right before inflation picks up (probably).

I'm sure this hiring will drive wages up sharply the next year.

Important to realize that we usually have a recession just a few months after peak employments is hit tho.

K5 detector wrote:

Hi, K5/Igy! Only 1 minute between posts using different handles? You're not fooling anyone!

I like his occasional grammar or spelling error to throw us off.

Something the amazing Igy could never do.

mellon wrote:

K5 detector wrote:

Hi, K5/Igy! Only 1 minute between posts using different handles? You're not fooling anyone!

I like his occasional grammar or spelling error to throw us off.

Something the amazing Igy could never do.

Me? Any actual errors you can cite or is this just another baseless accusation?

Yo Yo Pa wrote:

I wonder is there is some way we can benefit from Detectors delusion

Just the most recent one.