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Jan 10
Tuesday
Stocks

Order to Close Netflix long @ 120

Another good day for Netflix - up more than 14% when we looked. Order to close HALF our Netflix holdings at $120. That’s the minimum target for our long as the gap closes. Invariably, it will overshoot that mark. Our personal Netflix holdings are in at $67 - Taking half off the table at $120 will mean the rest of our holdings are almost free carried. Fundamentally we like the Netflix business model. Major risk for Netflix is the costs of their content and whether more content providers will shun Netflix to offer their own online streaming library. In general, there is still a place for a central streaming provider. The low market capitalisation of Netflix makes it an easy takeover target - and probably a great one too if the acquirer has the muscle and financial firepower to back it long term.

Lots of potential acquirers - Google, Amazon, Microsoft, Apple (and potentially Content owners - Disney/Fox are all acutely interested in the online streaming space).

Netflix Chart 2012: Closing the Gap
Netflix Chart 2012: Closing the Gap


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