45x times 2004 earnings, which have to grow more than 100% over 2003 estimated earnings, in the face of heavy competition from Walmart, Blockbuster, VOD, etc. May not happen immediately, but this stock will be down to $15-20 share with little upside before that.
What I'm waiting for is a short to come here crying about how their broker forced them to cover with ruinous losses. And then blame the longs for his misfortune.
I've seen it on other boards, examples being XMSR and the old EXPE board.
...because if you are coming to me in those circumstance to buy MY shares, there will be no mercy. None.
You winsome smile will help you not at all, nor cute comebacks. I will clean you out because I want your money.
Do you understand what it means to be told you HAVE TO come up with a few thousand shares of a certain stock by a certain time AT ANY PRICE?
Do you really want to be caught over that barrel? It could be the quick end of your budding investment career.
>in the face of heavy competition from Walmart, Blockbuster<
You got to be kidding, heavy competition? Where have you been? WalMart has been �competing� with NFLX for almost a year and the only one thing has happened; NFLX has gained more customers, about 40 new subscribers an hour. Walmart has what? NSIP and 10 other customers. Heavy competition LOL
Notice the Yahoo P/E. Click on Profile...
Ask yourself... 30 P/E... On trailing 12 months earnings? Not 2003? Not 2004?
Yes, that's right. Based on EBITDA, the *current* P/E is... 30.
And guidance is about to go up (way up) for 2004. This is why all you shorts are toast.
Enjoy your weekend BBQ... a taste of things to come.
I'm not short yet, but will be as soon as I can get some short shares from my broker. Netflix has a good idea, but the valuation is too high and competition is building. Stock will run with the market in the short-term, but eventually it will come down to a more justified valuation IMHO.