I tried. Maybe I placed a seed in some of the hedgefunds looking for a quick kill on some shorts. Cramer's staff didn't want me to mention Netflix in my question because it was to be mentioned by Cramer already. Right before I went on, the lady said to revert back to my original question to include Netflix. His shows are sorta scripted.
If you look how Netflix reacted the morning after, it dipped a little and steadily rose to finish near a high for the day. It appears the hedgefunds were preying on each other when blood was in the water. I would expect the same for CSTR if earnings can surpass estimates and they guide higher into 2010.
Nah - he just said he got his pair-trade wrong (short NFLX / long CSTR). If you remember what he said with this trade a while back...he wanted to be long what he thought would be the better stock (CSTR); and short the other (NFLX) in case his whole underlying thesis about these two taking the rental industry over from the brick-and-mortars was wrong. He always did like NFLX as well and simply said it was the one to own.
IMO - they have both been ones to own. NFLX now has 12M subscribers. There are a lot more people that rent movies and even some of those NFLX subscribers still pick up the occasional movie from Redbox anyways. It's nothing to worry about. He also said to stay away from GMCR the night before their quarter to wait-and-see the quarter...and that went up 8 points off a blowout quarter (big short position).
If this is true it would be the great for us longs for 2 reasons. First, the Cramer kids will sell which means I can buy more for mid 20's and secondly it would be the last sign that I needed that we hit $35 on a short covering. Remember what Cramer first said about NFLX last year...yeah you guessed it..dead wrong.