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  • Linkedin's Profit Growth Leaves Social Media Peers Trailing Behind  [View article]
    If you own a company and I worked for you at a reduced salary but you give me a piece of your company. Do you think it is relevant that you have given me some shares?
    If I sell you a company for a price that cannot be allocated to assets because the price is so high. So that amount is called goodwill that needs to be amortized. Do you think it is relevant that you have paid a price for goodwill that now needs to be amortized?
    Sep 5, 2012. 07:07 PM | Likes Like |Link to Comment
  • Netflix: Game Over  [View article]
    Your stated that nflx has to pay its 5 billion content obligations with future earnings. That is incorrect. Content obligations are paid with future gross subscription income. When those obligations come due, nflx should have the resources to pay for them.
    Sep 5, 2012. 10:23 AM | 2 Likes Like |Link to Comment
  • Apple (AAPL) has until tomorrow to outline which Samsung devices it wants to ban from being sold in the U.S. following the U.S. company's massive patent win. A hearing is provisionally set for Sept. 20. Following the verdict, Samsung (SSNLF.PK), might need to postpone introducing new devices so that it can make design changes. Meanwhile, the WSJ, Bloomberg (I,II) and Reuters provide accounts of jury's deliberations.  [View news story]
    I thought the infringements are just design elements, not technology.
    Aug 26, 2012. 09:27 PM | Likes Like |Link to Comment
  • Netflix Hits New 52 Week Low: What's Next?  [View article]
    The window to change back to the old way has closed. It is too late to change back now. It is no longer productive to discuss the mistakes of 2011. Nflx is now commited to executing Hasting's vision.
    Insiders have been buying at higher prices. Hasting has not been selling. Also at a market cap of 3 billion, this brand is fairly priced.

    I am long.
    Aug 2, 2012. 07:50 AM | Likes Like |Link to Comment
  • Netflix Does Its Tech Homework  [View article]
    Nflx,s "off balance sheet liabilities" are actually not liabilities. They are commitments to purchase content. How will the commitments be paid? The contents will generate income to pay for them.
    This is like when I sign a 5 year lease for an office. I do not have the money to pay 60 months' rent. But over time, by occupying the office and running my business, I am able to pay the rent and make a profit.
    Nflx might have make a business by deliberately killing dvd. But it is beyond the point of wavering now. Going forward, it has no choice but to stay the course and execute its plan. Nflx is very good at executing. It did a good job with dvde and then it did a good job with streaming. Nflx will make it.

    Disclosure: was short, now long.
    Jul 31, 2012. 04:19 PM | 2 Likes Like |Link to Comment
  • In a stunner, Marissa Mayer, the head of Google's local services ops, has been named the new CEO of Yahoo, instead of interim CEO Ross Levinsohn. YHOO +3.6% AH. GOOG -0.5%. Update: Yahoo has issued a PR confirming the move.   [View news story]
    I checked her profile on wiki. What a woman. If she cannot do it, nobody can.
    Jul 16, 2012. 06:04 PM | 2 Likes Like |Link to Comment
  • Are Netflix Shares Undervalued?  [View article]
    There is some misunderstanding with respect to the 3.6 billion. It is not a liability at all but rather a commitment to purchase content in the future. It will become a liability when the content is delivered by the studios. However, the content will generate income to pay for the liability. The question is, will it be generating enough income. That is what the market is trying to figure out.
    Jul 10, 2012. 02:28 AM | Likes Like |Link to Comment
  • The big tech selloff that's occurred over the last few weeks has resulted in valuations for many large-cap names once more falling to historically low levels. Here are some trailing P/Es for prominent large-caps, none of which take into account net cash and investments: Intel (INTC): 10.6. Microsoft (MSFT): 10.3. Apple (AAPL): 13.7. Google (GOOG): 15. Cisco (CSCO): 9. IBM: 13.6. EMC: 14.7. Dell (DELL): 6. H-P (HPQ): 5.1. On the other hand, Facebook (FB) still has a trailing P/E of 64.5.   [View news story]
    I am thinking of getting an ipad but have not done so because i cannot figure out why I need it. Is there anything that a laptop cannot do that an ipad can?
    Jun 3, 2012. 03:55 PM | Likes Like |Link to Comment
  • Banking Massive Pandora Gains, Getting Aggressive With Lululemon  [View article]
    Lulu needs to be very selective as to where it opens new stores. Locations such as Santa Monica are not numerous. This may be a limiting factor in its growth.

    PS: One time my girlfriend and I walked by the Santa Monica Lululemon store and decided to go in and take a look see. We came out with $500 less in our wallets.
    May 25, 2012. 03:56 AM | Likes Like |Link to Comment
  • Salesforce.com Has Broken The GAAP Model: Why The Stock Is Unlikely To Fall  [View article]
    To say that GAAP does not matter in this case is to say that dilution does not matter. Right now the market is saying it does not matter. Your article basically says the market will continue to think so. So you are making a prediction about this stock.
    May 20, 2012. 12:13 PM | 2 Likes Like |Link to Comment
  • Setting Up An 8-Year Old To Be A Millionaire  [View article]
    Hi Rocco:
    I take exception to your idea that you can live off of 1000000 by writing covered calls and naked puts. You have not take into consideration "black swan" events.
    Take the example you gave of a 1000 shares of aapl. Let us back test it for a year. When apple was trading under 400, you would be writing covered calls. Since you cannot foresee the stock going to 600 in such a short time (it was under valued for so long so one cannot predict the market changing its mind so fast). As a result, the stock will be called away. To get back in the stock, one needs to write puts with higher strike. That is risky.
    Another example would be say a repeat of 2008. All you puts will be assigned to you and the portfolio will be substantially under 1 million.

    May 4, 2012. 06:39 PM | 3 Likes Like |Link to Comment
  • Netflix: It's All Over But The Inane Tears  [View article]
    Rocco will be back after Q2 earnings (late April).
    Feb 21, 2012. 10:49 PM | 1 Like Like |Link to Comment
  • Is Netflix On A Suicide Mission?  [View article]
    I think you confused Tilson with David Einhorn. Einhorn got fined 11 million in GB. Einhorn is much bigger than Tilson. Tilson only manages about 200 million which is smaller than a lot of retail stock brokers. But Tilson got on CNBC a lot more than even the big boys because he is very well spoken.
    Jan 27, 2012. 11:42 PM | Likes Like |Link to Comment
  • Is Netflix On A Suicide Mission?  [View article]
    I agree with JYucca that if nflx can become so dominant that content cost might decline on a proportionate basis. However, it is a very unlikely scenario. Due to the technology not being proprietory, competition will come in to prevent nflx from dominating entertainment delivery.
    My short thesis for nflx is that, (1) the technology is not proprietory and (2) it owns no content (only licenses that cost too much). Witney Tilson does not think these two are issues. Well, he is the one who went to Harvard.
    Jan 27, 2012. 11:29 PM | Likes Like |Link to Comment
  • Netflix Litigation: Ambulance Chasers Or Legitimate?  [View article]
    Hastings did say, "we will only take on content consts that will enable us to main our margin" (not exact words). I do not know if that statement is materially misleading.
    Nflx's technilogy is not proprietory and it has to rely on others to provide contents. However these 2 problems can be solved if it can grow its subscriber base to a critical mass; say 50 million. I think that is not achievable and therfore I remain short.
    Jan 18, 2012. 05:55 PM | 1 Like Like |Link to Comment