Donny my man, did Greenberg send you over here to post two straight days now ?
Shorts must not have liked the recent bottoming action ...
First of all, for comparable plans, WMT is 18.76, NFLX 19.95 or 5%. If NFLX upcoming price increase works in sending high volume renters to WMT, BBI, or Brasco Video; NFLX will be thanking them and handing out directions.
If Greenberg thinks the model simply cannot work, why are WMT and BBI killing themselves to implement their poor imitations ?
If NFLX can't possibly be profitable due to their business model, how can WMT or BBI be profitable with the same business model but lower pricing model ?
What's the churn rate or market penetration rate for WMT or BBI's subscription models ? Oh, right, doubt the shorts even know. Yet, they trot out these so well thought through comparisons between NFLX, WMT and BBI on a daily basis.
Interesting that WMT is facing a ground swell of communities now locking them out; a ground swell in religious circles that will most likely lead to some well publicized WMT boycotts in the not so distant future.
Man, WMT is in trouble now that I think about it, not NFLX (ggg) !!
NFLX has a great working relationship with the movie industry and works well with them; like every other business line, WMT will want to enslave Hollywood and have them working for WMT. I doubt you'll see that in our lifetimes.
Interesting that BBI has yet to get any subscription model off the ground other than their "in store" plan. "Come in, rent all you want from your store inventory that doesn't have what you want in the first place". Now, there's a plan.
You and I are on the same side of many trades, not this one. We'll soon see about the elasticity of NFLX' pricing model.
Until there's proof a quarter or 3 from now, not innuendo from those with agendas like Greenberg, there is no reason to believe the new pricing model will not be successful and do exactly what the shorts fear most. Short term churn pop ( high volume "loss leader" renters leaving NFLX ) and long term churn decrease thereafter ( higher margin combined with continued growth in base ).
This stock is great to trade daily from the long side, you just watch for enough lemming shorts to pile in and take your position. That wasn't you shorting at 27 yesterday was it ? (ggg)
Perhaps the next time the stock breaks out, which it eventually will, the record short position will cave. If and when it does Donny, I hope you're long gone. It may not be very pretty.
JB |
