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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 109.19+1.5%Dec 1 3:59 PM EST

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To: redfish who wrote (148)11/8/2004 1:49:30 AM
From: VCMaverick   of 2280
 
Long NFLX here. Looking for a gap fill to the $15 area. Watch for resistance at commonly followed MA's. Long period of basing followed by diminished downside volatility likely has short sellers weighing their options and contemplating a cover to protect profits in the immediate term.

The so called "DVD wars" are likely overblown for several reasons. BBI's knee-jerk price competitiveness shows how desperate the company has become. BBI has a huge public image problem due to their predatory late-fee assessment practices. Announcing a few cents off versus your competitor doesnt exactly do much to win back lost trust. BBI also has a major vested interest to see its physical stores return profits. This built-in aspect of their business model is not something that they will abandon lightly, and represents an overwhelming long-term liability for them in this changing marketplace.

Continued....

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