Watch NFLX initiate a secondary offering to take advantage of its elevated stock price--they will use the proceeds to buy content from the movie studios!--They essentially print up shares and exchange them for cash. what a racket!!!It is time to exploit the gullible retail investor.
Yes, that is exactly what they need to do. But, why haven't they done it yet? Equity has plummeted, cash in down to only $50 mln (not much of a warchest)net of account payables,and earnings declined 12.5% from 2Q10 to 3Q10. Perhaps the problem is that most Wall Street analysts rate this a sell and investment bankers would be taking on very high legal risk to underwrite at these prices. Something seems wrong, perhaps accounting issues?