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Thursday, April 22, 2010

How wrong were the shorts on NFLX?

Go back a couple of years, and try and remember when the Citigroup analyst was "concerned" about NetFlix, and 30% of the float was shorted.

Do you remember those stories?

Remember the dreaded Netflix adhesive flap, that sometimes caused the Post Office sorters to jam, and then, they had to be sorted by hand?

Remember how the NY Times had that story?

Planted by some hapless short?

In fact, the the shill for the shorts, the analyst from Citigroup, had this to say:

In the report, Mr. Wible reiterated his sell rating on Netflix and his buy rating on Blockbuster. “Given the magnitude of this risk,” he wrote, Netflix is most likely to “work towards resolving this issue by redesigning its mailers.”

How did that paired trade--a short of NFLX and a long of BBI work out?

15 comments :

Anonymous said...

Hi palomoni--what was up w/ yesterday's invite only? I fear I am missing out on some secret blog posts---

Any thoughts on STT?

Palmoni said...

STT is Goldman's partner in crime, so I think it's being tainted with the same brush.

Invite only was on some interesting Flight Aware information, especially with shutdown in air traffic

Anonymous said...

how can we get on your invite only list? do you plan to go private ? thought you might have shut the blog down. was scrambling a bit.

Anonymous said...

Agreed Palmoni,

I don’t always agree with you but love your input. I would be happy to share my identity with you, just not everyone who visits this blob. How would I accomplish that? I want to make sure I’m on an invite list if you go private again.


IOC is down but did a deal mitsui that was announced recently. This will be much bigger than anticipated. 80 short term target.


thanks

Anonymous said...

s/b blog.

Anonymous said...

any spec play for $200?

anonymous middle east said...

Palmoni
I kind of freaked out when I saw the blog was invite-only yesterday!

Do you still like LUNA as a long term play?

Palmoni said...

yeh I do but it will take some time

Anonymous said...

Hi Palmoni,

yesterday's secret blog freaked me out too. I thought maybe some heavy legal action was involved. Glad to see you're back.

What do you think of the prospects of an OIH breakout & especially a HAL breakout?

Anonymous said...

do you know why MGM and the casinos took off today...man i sold before the goldman story and was hoping to pick some back up at a lower level but it's just been running

Anonymous said...

Palmoni or anyone --I love Lucy, Lola and cherry cola but why does anyone Love LUNA? Thoughts, please

Anonymous said...

Thought's on C?

cramer says C is great deal at 4.87
on tonight's show.

C had good earnings and international exposure unlike other banks. Why wouldn't it go up?

Also, the nyt had a good article on C the other day --How did Citigroup trounce JPMorgan Chase and Bank of America?

nietzschesportfolio.blogspot.com/2010/04/citis-decent-showing-better-then-bac.html

Anonymous said...

Wow last pic was hot

Go big babes

Palmoni said...

LUNA is working with ISRG on their technology

Palmoni said...

Drilling broke out--check out the SLB news this am--news in the future is better