And lastly, comcast was quick to do this deal because they want to be benevolent so their merger goes thru. But verizon, etc will see how quickly nflx spazzed and they will demand more money. They are not as worried about regulators as comcast. Going short in monday. Nflx business model was already a joke , now w net neutrality gone it is more of one. Will take time but this stock is destined to implode for so many reasons, congrats if you were long from 2013, but its downhill from here
Yep exactly, typical hastings scam. Not sustainable tho. Since the dvd business went into run off , the margins are nothing and they will hit saturation in the next few years in terms of new subscribers. Look at how hastings excellerated his selling when they transitioned from a dvd co to a streaming co. Be careful if you are long, you are buying hastings shares that he is selling. Who is smarter and knows more about the future of this business, him or you?
Only if they hurry up and pay tens of millions to Verizon, att, and everybody else, which will wipe out the tiny cash flow they have. And if they dont hurry up and do this customers will flee, not grow. Why do you think they cut this deal so quickly. Since the news of the slow down and interruptions, churn is waayyy up.
They ve had millions and millions of new subscribers and their cash flow is barely positive. How do YOU explain that? And now they will use more of this cash flow to pay off comcast, then verizon, then etc etc.....margins were already being revised downward after the last earnings report and now this. What a scam artist that hastings is. How much stock has he sold last 3 yrs? Too funny
Except ethanol prices are markedly higher. Not sure what baldy is talking about but heres a clue from adm report:
During a call to discuss the results, Juan Ricardo Luciano, chief operating officer and executive vice president of ADM, said lower corn costs, higher U.S. gasoline demand and strong exports supported lower industry inventories and higher margins for ethanol. He also indicated the company is continuing to actively manage ethanol production levels to maximize margins and is continuing to advance its cost-management efforts.
"Margins for the ethanol industry expanded during the fourth quarter of 2013 and have remained strong in the near term. Ethanol and distillers grains prices reflect robust demand and tight supplies both domestically and internationally.
"Margins for the ethanol industry expanded during the fourth quarter of 2013 and have remained strong in the near term. Ethanol and distillers grains prices reflect robust demand and tight supplies both domestically and internationally. As a result of these factors, as well as our recent acquisitions, we anticipate our first quarter 2014 results will be better than the fourth quarter of 2013," concluded Becker. "Finally, with our current hedging activities and visible margin structure, at this point we expect the first half of 2014 to be our strongest on record."
Yes they can pay off their debt from rev but you Are missing the point, it will wipe out profits. Do you realize how pathetic 5 mill in FCF is for 1.17 bill in rev? And the other thing you dont model in in your 18.5 bill rev cs 7 bill in debt is they have no choice but continuing to sign content deals so that 7 bill in debt will only continue to grow. Research the trend in their off balance sheet debt, its not good.
This quarter for a 21 bill market cap company. Also raising 400 mill in long term debt after raising 500 mill in lt debt just last year. Too funny
Its true. Look at comparable insider buying in recent biotech ipos rlyp, tndm, xncr, tlog, kin. Bullish very