you are viewing a single comment's thread.view the rest of the posts
2 things wrong here:
THe "value of an asset, is what the free markets determine it to be or " Price". Think about this-if all assets were "Properly Priced"@ the" Proper Value" per mathamtical formulas, there would be no buying or selling, or markets for that matter, as there would be no reason to trade assets, becuase no profit incentive.
2- You also assume that NFLX stock price has to fall to reach the equilibrum between, what you say is " Price" & " Value". Right now NFLX is " Priced" for the Value to rise to meet it at a higher equilibrium. Its the glass half full vs glass half empty approach.
So, NFLX "Price" @ 120.90 is properly valued in the free market place , as most feel the Mathametical "Value" will rise to meet the "Price"
that must be the dumbest thing I have heard, by that token should it trade at $ 12000
then that would be the true price and valuation both ???, HA !
ITs true Mkt esists for two groups to trade in a theoratical free mkt approach assuming under vigilant regulations, full "Honest" disclosure, no insider trading , no hoarding, no price fixing assumptions.
All of them are hard realties whether oneway or another.
On top of that MM manipulation, Creative accounting,Bogus news , Biased media pump, makes the market more like Poker table than anything else
On a poker table either you call, Fold or Raise.
If you have less chips then them you FOLD, that is what rules this market and stock like NLFLX.
You follow the big money, BUT BIg Money is already IN holding more than 91%, where do they go from here, buy from one another, in which case one sells and other buys, what if this selling creates more selling amongst them ??
As I said in earlier post, retail investor is simply inconsequential in stocks like this, if you are existing investor them good for you , take your chip to the cashier and get your cash, Congratulation you won !
Thanks for validating my point-
Its the dumbest thing you ever heard, because you dont understand how the market works....
Give me ANY stock that is perfectly "valued"
THere are "over Valued" stocks, Under Valued stocks...propely valued stocks...
Stock price is a value of what the market is willing to pay for a stock...
YOu mean to tell me, with all the smart people sitting over @ Goldman, and all the super computers they have, and tons of resources, that they would risk 133m dollars, on an asset that YOU think is over valued. YOu are smaarter than them now?
& i am sure, they wouldnt hold, and risk being the last out the door...
The free market place values stocks, and we as investors either decide to like it or dont...
Personally...I am long Netflix, as I beleive it is under valued..
but then again, I have been a holder since $7
this back n forth nonsense on what is overvalued or undervalued is just plain stupid. either trade the stock or get the F out of here. this is just stupid i tell you because quite simply wherever the stock price resides you can make money. all i hear from you and many others is ... whaaaaaaaaaaaaaaa
Yes s we well know stocks can get WAY overvalued and then plumment back to a reasonable value.Netflix by no analysis is reasonably valued therefore its over valued.It will plumment at anytime.The traders and shorts are all that holding it up.
Not shorts any more, they are not holding it up, its the Options expiry plus the pump and dump scheme in progress, benefitted by the suckers rally in market about coporate earnings of (always good) companies ignoring all the broader economic reports, all laggards, not so deserving, over priced and over valued, SCAMS all got the boost, thats all !
Institutions bit more that they can chew, they cannot swallow and they are ready to spit big chunks in face of suckers who buy such rallies
That's how you make money in the market!!!
Investing 101: You bet on the difference between perception and reality.
Buy undervalued stocks.
Short overvalued stocks.
Netflix definitely belongs to the second category, according to that article.