Tim Cook has been touting Apples services division as the iphone sales slow. I think they may want to foray into the streaming business as a venue for growth. Facebook and Google have been growing due to good acquisitions that seem high at first. But with 225 million paying subscribers expected by 2021 NFLX would be a good acquistion for them at a price point around here.
There was a tweezer top at 130 and 133. There was a bottom around 85 in between. We are close there so if we get a tweezer bottom which we are near I think we can get a nice rally which will run into Q1 earnings.
If 90.11 is the bottom then the shorts are in trouble. They need to buy back or could be steamrolled as stock sold off 20 points after earnings. In Oct the stock sold off after earnings but went to new highs.
Stock seems to be in a trading range of 85-130. It had to digest it gains from last years run up. Once the stock bottoms out in Q1 (whenever that is) it should rise ahead of Aprils earning since it expects 6 million new overseas subscribers.It went from 130-85 before it ran up to 133.
1)It has billions $ in tax loss carryforwards.2) It would get alot for goodwill;They are the largest renewable energy company in the world expected to go cash flow positive in q2. 3)They borrowed money at high rates but a cash rich company can eliminate this aspect. This would be a great buyout by ExxonMobil, Berkshire Hathaway, GE, or Google. All 4 are in energy(or invest in Solar) With fossil fuels use peaking around 2040 this would be a great long term investment.
The banks are usually the biggest ARBers. Maybe that why the French and Swiss banks are saying stock will rise massively. All the banks have to do is close out their short positions and they will be right.
If Sune buys VSLR with the new tax credit law and the lower deal price it will be a good deal. Rooftop vs big projects is like comparing the PC to mainframe. Sune will ride the new growth wave. If it scraps deal those who don't like the company's leverage ratios will applaud the move. At any rate I think it was the arbs who brought the stock down from the 30s to the teens. They will close out their winning positions and move on the next MA deal and the stock will rise massively.. Coal is dead. Oil and gas investments been cut to the bone. Solar and wind is best area of energy growth. I am pretty sure most of the shorts belong to the arbs or arbing shareholders.
Sune was in 30s before deal. Take out the the VSLR deal which knocked the stock down, add the recent 5 year extention of solar tax credits, cash flow positive by Q2, and 119 million shares short we go to the 200 MA around 17 real fast..