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Netflix, Inc. Message Board

  • bettyforty bettyforty Nov 13, 2012 1:09 PM Flag

    more rumors just moving stock- hang on shorts- i think you will be ok

    it is just my opinion but for some reason this stock can be moved easily by rumors. i think the shorts should be patient. a few more big moves up and the shorts will come out in full force. too soon now i think.

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    • From Forbes:

      "Over the past 12 months the number of Netflix shares being borrowed, a prerequisite for short selling, has climbed almost 200%. Although this was prone to some fairly wide fluctuations in the first half of the year, since July the volumes have really only been going one way – up! Similarly the price traders have been willing to pay for the privilege of borrowing Netflix shares, another reliable proxy for the demand to sell short, has been climbing steadily since summer. Both volume and rates really took off however, when the Microsoft rumour caused the company’s shares to jump.In a seemingly direct inverse of the price move, the volume of shares being borrowed has also climbed by 30% since the rumour, while the cost borrowing Netflix stock jumped from just 0.78% on an annualised basis, to 4.4%."

      Shorts are ignoring all negative news (from their perspective) and continue to pile on their short positions. In effect, the $52 Netflix bottom was a shorts' bubbletop or bubblebottom or whatever you want to call it. Now that Netflix is climbing up, shorts are borrowing at a higher interest rate in order to take advantage of the great new bargain.

      • 2 Replies to t_e_n_k_a_y
      • Here is the ending paragraph of the article that TenKay quotes above, which I find relevant:Despite Mr Icahn’s assurance that the company is undervalued, many in the market would seem to think this price jump brought it towards overbought territory. Although the 30% climb in share price is by no means insignificant, the company’s share price is still well below the peak of last year. If it is overbought now, what chance is there of it climbing further? Without a fundamental shift in favour of Netflix, or some broader improvement for the company that is yet unforeseeable, the lending data would indicate caution is well advised.

      • Forbes was the one of the ones that ran the Microsoft rumor, wasn't it? And it was just a rumor, right? I have not seen any bids to buy this company, except for Icahn's declaration that he owns 10%, and he is up around $20 a share, if he still owns them.

    • still waitin 2 short when idiots take this around $85. not time yet.

    • I don't think so. Go check yourself into the clinic.

      Sentiment: Strong Buy

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