THE THINGS THAT GO BUMP IN THE ... LIGHT? EDITION
27 OCTOBER 2011
TIME TO SETTLE IN WITH A GOOD FLICK
What Does Bump in the Road Mean for Netflix?
‘Tis the season for things that go bump in the night. What of the ghosts and goblins that will darken your candy-bearing reporter’s doorstep come Monday evening? The flickering jack-o-lanterns? The spooooky movies playing as tree branches, swaying in the gusts of October, scratch noisily and eerily against loose window screens?
What of those scary movies? Might the future of just how millions of viewers receive these films be in jeopardy? Your reporter and her family have become quite comfy-cozy with their ability to stream movies at will — whether that be at home, on the road with the family iPad, or at the office afterhours, when the mister is working late and the child is in need of entertainment. Might the future of Netflix (NFLX) be even scarier than the company’s horror film selection?
Indeed, for Netflix things went bump in broad daylight as the company's stock plummeted following the release of its third-quarter financial report. The numbers stunned shareholders, as the video subscription service’s report contained not only a larger-than-expected customer exodus than the company had foreseen after announcing an unpopular price increase last summer — but also a forecast calling for similar spooky moments in the next few months. And when the dust cleared, the company had lost more than a quarter of its value.
What’s your take on the future of Netflix? Can the company overcome the short-term bumps and go on to future profits? Or is this the beginning of the end? Stop in at The Exchange and voice your opinion. (Your reporter has posted a link from Yahoo! Finance there as more popcorn er, uh, food for thought.)
HOW DO YOU MAKE SENSE OF THAT?
The Free Monthly Club Webinar is the Place to Find Out!
We’ve been seeking your questions –- and our top-notch experts are ready and waiting in the wings to offer some answers. Take this one from SC member Jack Hills, who posted this question in The Suggestion Box:
Maybe add to a webinar a discussion of tax rates in the revenue based module. For one issue (GILD) it runs from 167% to -.2%. How to make sense of that?
Your reporter isn’t sure. But one thing she is sure of is that her knights in shining armor, aka the brilliant SC staff, are more than willing to offer their experience and insights.
Questions like Jack’s are fair game, so why not plan to attend the monthly free webinar: Investment Club Operations, with guru Doug Gerlach the third Tuesday of each month. You need only register once for all sessions.
Whether you have questions about club accounting, running a meeting, tax preparation, coping with problem members, or any other aspect of club operations, club expert Doug Gerlach encourages all SC members to join him at the monthly webinar and bring ‘em on!
STOCKCENTRAL FORUM DISCUSSIONS HERALDED
Member Appreciates Valuable Peer Insights
There’s nothing like gaining insight from the voices of experience – your peers — to get you pointed in the right direction or thinking outside your usual box. And no better place to do that than in the StockCentral forums, where like-minded investors gather. Check out this recent query on Gildan Activewear, Inc. — and the ensuing discussion:
“I picked up the lead on this company from some new sources I have been using to find companies,” posts SC Member Lynn Brown.
“How nice to see some discussion on Stock Central.
“Am attaching my SSG. Looks like Armin reviewed at some point, but couldn't find it on his wonderful blog. Looks like their cash flow is down but they also used cash to buy Gold Toe Moretz. Would any appreciate any info or comments. Thanks.”
Stop in, feel free to join in on the discussion and download the Gildan SSGs posted there!
TODAY'S ENTIRELY RELEVANT QUOTATION
“October: This is one of the peculiarly dangerous months to speculate in
stocks.
The others are July, January, September, April, November, May, March, June, December, August and February.”
— Mark Twain