Wednesday, May 11, 2005

Dissident slate likely in at Blockbuster - Media - General NFLX TOP STOCK

One of my families top performing stocks today is NetFlix. NFLX continues to add subscribers but the big news is the turmoil at Blockbuster.

Carl Icahn has won control of the board. Who knows what will happen with the company now. Icahn may even see it as a real estate play. In any event, the odds seem good that the company will discontinue the cut rate pricing to try to beat out NFLX

My bet is that if Blockbuster plans to move from store rentals to online rentals, it can grow the business just as fast at NFLX's price. Marketing the service to existing customers does not require extra low pricing. By keeping the in-store price up, the company could produce extra cash flow to gradually afford the switch over. The real estate could be gradually sold.

Anyway, go NFLX. This stock has been a roller coaster rider. We are at a small profit after riding way up and way down. It is necessary to hit some hills and valleys if you want to score a ten bagger. We still might make it with NFLX