I don't like NFLX even at the current price. The reason is the massive operating leverage they've taken on to maintain and expand their digital offerings. I suspect it has positive expected value, but definitely risky, so inappropriate for my situation.
1) First mistake was buying a small position after the huge drop, while starting researching it. I was thinking that there was significant overreaction - and likely many stop outs from the momentum players - and it would soon bounce back up. I had a wee bit of confidence because I'd looked over NFLX last December. Not enough to hold it over night, but I still shouldn't have done it - the situation had materially changed with their increased obligations.
Of course go figure with investing and speculating, I made money despite making a mistake. I would have made more if I hadn't fixed the mistake right away (now up over 10%).
2) I looked at NFLX in December from the short side. I should have kept up with it; if I'd read all their filings, I would have noticed the increased operating leverage, and been willing to short after the stock started dropping with the rebranding fiasco.
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