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  • Netflix's Streaming Quality Is Based On Business Decisions By Netflix And ISPs, Not Net Neutrality [View article]
    Please show how this is true..It will never ever be possible for ISP's to block a commercially valid website. Netflix does not pay for last mile connectivity to homes. They just expect the ISP to provide it...That's capitalism to you?

    Innovation?
    Over the last 5 years my ISP speed has more than tripled. Innovation is rampant.
    There is almost unlimited free streaming including the Olympics and Super Bowl

    Netflix is unique because of its massive broadband needs. If a business needed to run buses across your property 24/7, and you needed to expand your property because of it, would you want to charge them for it? Why is it so awful to expect Netflix to pay for the right to use the network especially when they are such a huge user?

    This debate is actually about who raises the rates on customers as bandwidth needs go up and up. Either ISP's will charge Netflix and Netflix will pass this on to customers, or ISP's will not charge Netflix and ISP's will pass this on to customers.

    Why is it wrong for the bandwidth hogs that only watch streaming to pay more for bandwidth than people who don't"?? You don't want to pay for cable programming I watch (and pay for), and I don't want to pay for your bandwidth use ..
    Feb 14 09:48 AM | Likes Like |Link to Comment
  • Netflix's Streaming Quality Is Based On Business Decisions By Netflix And ISPs, Not Net Neutrality [View article]
    Comcast gained subscribers in the 4th quarter.
    Comcast will do a better job than Time Warner.

    Rampant cord cutting is a myth... (Although obviously some subs have dropped)

    One reason subs have dropped is that home growth has slowed and that's a part of cable's sub growth..its a little known fact that about 25-30% of each ISP's subs churn off and come back on every year due to moving or switching between providors.

    Vested interests make the world go around. I wish my grocery store had 100 lines open on Saturday when I do my shopping... I gas was $1 a gallon...but those darn vested interests don't allow this...Netflix has its own vested interests too


    It's a business reality that ISP's own their networks and its a business reality Netflix has no leverage except regulation ... regulation is highly unlikely
    Feb 14 09:33 AM | Likes Like |Link to Comment
  • Netflix Is Still Wildly Undervalued [View article]
    its true that they are banking on more bargaining power.

    The most misunderstood part of this market however is that content costs are forever going up..

    The extra bargaining power will only make them go up less.. and Comcast has much more bargaining power than Netflix...Netflix is only streaming...Comcast is everywhere
    Feb 13 12:49 PM | Likes Like |Link to Comment
  • Netflix Is Still Wildly Undervalued [View article]
    exactly..

    actually one possibility is a buy out and the bankers are best served to have the highest priced buyout..

    as of now, its totally in wall streets interest for Netflix to be high priced..
    Feb 13 11:25 AM | Likes Like |Link to Comment
  • Netflix Is Still Wildly Undervalued [View article]
    you will get you wish Sakelaris...
    on the product side you have nothing to worry about..

    a hybrid Netflix is a good product for consumers... even at a higher monthly cost

    Netflix is an excellent product and a horrible institutionally manipulated stock

    Denigrating people that disagree with you as shills is bush league...

    You would not have streaming without the cable companies..so you should root for them too.. you should hope they make good profits so they can continue to upgrade their speeds which are in some cases 20x faster than they were 5 years ago..
    Feb 13 11:07 AM | Likes Like |Link to Comment
  • Netflix Is Still Wildly Undervalued [View article]
    Whaaat????
    Comcast can't survive against Netflix!!

    Comcast better survive or Netflix can't get its programming to you..

    You have no idea what you are talking about...Comcast throws off over $ 5 billion of CASH every year... Netflix has no cash flow...
    Feb 13 11:03 AM | 1 Like Like |Link to Comment
  • Netflix Is Still Wildly Undervalued [View article]
    The logical argument for future Netflix price appreciation is that its been going up in the past... its like betting red again because it came up the last 5 times...it may come up again..

    as long as momentum is doing well on wall street, Netflix stock price may stay strong

    This article is one of the lousiest stock touts I've ever read in the history of this site...and that's saying something...

    the funniest part is the "i told you so part" .... nyah nyah nyah...
    Feb 12 05:13 PM | 2 Likes Like |Link to Comment
  • Netflix's Streaming Quality Is Based On Business Decisions By Netflix And ISPs, Not Net Neutrality [View article]
    If you don't want a high speed line into your house, you don't rent one..
    what is so hard to understand about that?

    It's true the government does enable the high speed data, and they charge the companies that do it a fee. nothing wrong with that either. but make no mistake...that fee is passed on to customers and is just a tax on you and me, because just like companies, the government will suck all the $$ it can from everyone..

    ...the political clout of subscribers that pay an $8 a month fee and want to demand better service is about zero

    There is no barrier to a free market...if you want to build a high speed network in a couple US cities i'm sure the folks there would love it...you'll need about $10 billion though.. and you'll need to negotiate carriage with programmers....that's a free market.... free markets have financial barriers to entry..companies that enjoy barriers to entry are generally good investments..


    the test markets for google welcomed them with open arms...t
    Feb 12 02:12 PM | Likes Like |Link to Comment
  • Netflix's Streaming Quality Is Based On Business Decisions By Netflix And ISPs, Not Net Neutrality [View article]
    Wait Sakelaris....the net neutrality "law" was just struck down. It's unclear that there will even be an appeal.. It's going the other way..There is almost zero political interest in regulating the internet in any way except from companies that profit from free use of it, and they are losing the argument.

    Why are my comments about business realities a "taunt"? Are you actually trying to argue that a company should not charge what the market will bear for its services.

    Do you understand that if Netflix bombard the ISP's with bandwidth demands, either the customer will pay the ISP more or Netflix will have to cover it (that's what will likely happen). There is no free bandwidth

    The actual value creation is not in Netflix ability to rent a stream and resell it....reselling never creates value....

    the value is in the plant, equipment and human capital that goes into the creating the network.

    There is nothing morally or ethically wrong with making a profit on your vision and investment. There is nothing wrong with trying to make the most profit off your investment. It is not a taunt to make a valid and reasonable business prediction. Grow up.
    Feb 12 09:51 AM | 1 Like Like |Link to Comment
  • Netflix's Streaming Quality Is Based On Business Decisions By Netflix And ISPs, Not Net Neutrality [View article]
    The ISP's spent literally over $100 billion building out the network...

    That investment is paying off for them. Having super fast internet provides incredible value for money for customers and over time they will be more and more "internet" companies and less and less "cable" companies.

    As a consumer, its never a happy situation when choice is limited, so emotionally it can be frustrating , and like any network, there are outages, screw ups and slow downs.

    In any distribution model, if somebody used up all your capacity, you want to get paid for it. The net neutrality situation allows the ISP's to finally charge Netflix, and they will.

    They can't put Netflix out of business, but they can squeeze them.

    The cables and telcos are excellent investments because they have all the leverage, tey enjoy solid gross profits, they have spent the big bucks, and their service is highly valuable to customers and highly valuable to companies like Netflix that desire bandwidth to deliver their product. Netflix pays the postage for what they send in the mail, they will pay the same to broadband companies.
    Feb 12 08:00 AM | Likes Like |Link to Comment
  • Sell Netflix: The Icahn Thesis Is Flawed [View article]
    You are correct. Netflix cash flows are worse when you dig in. It's impossible to know for sure without their books because the vagaries of accounting give them tremendous leeway to report just enough to stay legal but not show what's going on..

    Netflix easily gets away with it now because they keep adding subs and promising to monetize them (ie get some real cash flow) later.

    I just bought some April puts for a trade.


    Jan 23 11:56 AM | Likes Like |Link to Comment
  • Short Netflix Into Earnings? Maybe, If You Hedge The Trade [View article]
    Here's the thing...

    If you gamble, and a roulette wheel keeps coming up red, do you bet it again? do you bet black because it can't come up red again...we all know it doesn't matter..

    Earnings call investments are gambles.. Nobody knows what Netflix is going to do relative to expectations. In the past, I'd say that when the numbers were good, they were very talky beforehand..

    Also, to justify these valuations , Netflix is going to have to address future profitability at some point, and that's a huge issue...it may not be a problem in the near term though.
    Jan 22 10:23 AM | Likes Like |Link to Comment
  • Netflix Is Facing Too Many Headwinds To Justify Its Current Valuation [View article]
    Life is long..Things are going to change.

    Today's stats are not refutable...Netflix is growing and has the most subs...and customers like Netflix.

    However, they make no money to speak of, and the world is changing to the benefit of distribution networks and programmers..
    Netflix will have higher costs, and less programming. This is inevitable and just wait till the cable companies get to charge them for using all their bandwidth.

    The bull thesis is basically that the stock is up, so its a good stock.

    Kidding aside, institutions and banks will prop this up for as long as they are able because they all want to be the banker for the inevitable deal in the future...
    Jan 20 02:51 PM | Likes Like |Link to Comment
  • Netflix Is Facing Too Many Headwinds To Justify Its Current Valuation [View article]
    Programming contracts are updated and renegotiated at the end of term. As each contract is renewed, programmers will enjoy multiple deep pocket bidders that are likely to overpay for libraries.
    This was not the case during the first go around...

    Netflix can't generate meaningful cash flow from their current fee and their costs, so as the price for programming goes up,
    many of the tv shows and movie libraries you enjoy will just disappear from Netflix...They won't be able to afford them..

    In addition , the cable companies are going to leverage their network investment by letting programmers directly access customers (HBO GO), and investing in programming for themselves..its even worse for them if the net neutrality ruling is not reversed and they end up paying the cable companies for their huge bandwidth needs

    Netlfix is the best value today (this is subjective...I have it but rarely watch it).. It is inevitable that they lose programming and raise prices at which point customers (And investors) will face the end of the current money losing subscriber growth...
    Jan 20 08:02 AM | 1 Like Like |Link to Comment
  • Sell Netflix: The Icahn Thesis Is Flawed [View article]
    I know it will rely on super fast broadband networks...and I know it will rely on content (both high production and low production values)..

    nobody knows what happens to the guy in the middle trying to buy the value created by programmers, and sell it for a profit over the broadband networks required for customers to see it...Netflix is in the middle...

    btw...I recall the same stuff in the cellular (see how I age myself) industry...it was "POPS"...and when DLJ said penetration could reach 20 or even 30 % someday, people wondered if he was nuts..
    Jan 15 09:31 PM | Likes Like |Link to Comment
COMMENTS STATS
330 Comments
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