% | $
Quotes you view appear here for quick access.

Netflix, Inc. Message Board

  • islandtefl islandtefl Jan 26, 2013 4:56 PM Flag

    Reed Hastings and Benjamin Graham

    Undoubtedly, Reed Hastings is an extremely bright man. He has built a great company, and I am a happy paid streaming customer. Reed has a great track record with his two prior public companies.

    However, he is a "genius" as a manipulator/spinner of the financial results of NFLX, and one of the slickest salesman I've ever witnessed. Know any Eskimos? Well, they bought his snow, and he left them with a smile on their faces.

    Bear in mind that quarterly financial results can be "massaged" and Reed is a master of these techniques. Take a look at the financial data in the 8K. Look at free cash flow vs. reported earnings. Take a look a 2011 Q4 vs. 2012 Q4. Isn't this the method one uses to gauge a company's progress? Look at the growth of "paid subscribers" vs "total subscribers" (which includes free subscriptions).

    Ben Graham coined a phrase I will never forget: In the short run a stock is valued by a "voting machine"; in the longer run it's valued by a "weighting machine". Look at NFLX's 70% rise this week, their deteriorating free cash flow, their huge off-balance sheet liabilities and consider Ben Graham. As smart as Reed Hastings is, Ben Graham sets the standard in financial analysis.

    Carl Icahn is somewhere in the middle and he saw value at $50-60; Does he see the same value at $170?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
124.16-0.64(-0.52%)Nov 25 4:00 PMEST