Netflix is why I gave up shorting stocks. I lost my ass and wasted so much time stressing shorting stocks in the past. When you are wrong it is hard to admit because you really need to have an opinion to go short. If you have an opinion, you are doomed :) .
While visiting New York, Lindsay, Adam, Jeff, and the Wallstrip Young Guns were yapping about Netflix. They love it. It works. I immediately told them how wrong I was and needed to rectify my wrongness. So here I go…
Netflix is cool. The guy who started it is way cool. It is ambitious. It is AMERICAN. They have rolled with the punches. They have so much they can now do. They are forever going to be relevant (maybe I am overdoing it)? They are the poster chart, stocks and company for staying away from shorting stocks that you can’t absolutley prove ARE CORRUPT.
In the paired trade contest I set in motion this July, I nailed my long – Apple – up 80 percent from the day I picked it, but I am down almost 30 percent on Netflix. I gloat posted as Netflix completely missed their numbers a few days after the contest started. WRONG. It is straight up 50 percent since that gloat – woops!
I am still crushing the competition in the contest and will likely keep my used iPod.
Half the entrants shorted Google and a really smart man Fred Wilson chose Long Yahoo/Short Time Warner (boring :) ). Note – I pressured him to enter AND he rarely will pick stocks on his site or mine.
In second place is Trader Mike. Nobody else is close. Mike nailed Hansen’s Juice as a short. Mike would be killing me if he had not been such a perma bear (right at the bottom) and chosen COKE as his long. Phew! No idea why people still read him. He is so late 2005 :) .
Back to Netflix. The perfect tuck acquisition in for FEDEX. Can’t wait to see that happen. Makes sense. This absurd prediction is why I also gave up trading on merger rumors.
Disclosure – Long Apple