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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (47246)	3/30/2012 10:54:16 AM
From: NikhilJog	Read Replies (1) of 78515

Sergio - thanks a lot. I def. will. However, without even reading the article, I can tell you that you are correct about low pricing. One of the main conclusions I have come up among few others is that CSTR will get squeezed if it continues with its low pricing strategies and there are reasons to it - For example - their relationships with studios, where not only their content costs are increasing, but their relationships with wholesalers ( one of the main pillars supporting their low cost strategy) is also changing making it costly for them to acquire titles. Wholesaler relationship is something thats not understood by lot of people or talked about, but is very pertinent to the firm. If the catalysts i am highlighting pan out, then the very basis of Barron's article will be blown away and you will see the share price coming down. However as I have stated, it might be too early to take a short position. So if you want to, you might wait it out a little bit and then buy long term puts or atleast thats something i will do, after the price crosses $70 a share.

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