Positioning for Hastings to Finally BUY Shares In Netflix

(This is an excerpt from an article I originally published on Seeking Alpha on August 14, 2012. Click here to read the entire piece.)

Netflix (NFLX) is a classic bear/bull battleground stock. Depending on your mood, you can be convinced by the bullish or the bearish arguments. {snip}

In the near-term, I think the biggest positive catalyst NFLX can get is a massive purchase of shares by CEO Hastings Reed. Reed certainly has enough money to do his own repurchase plan. {snip}

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Note well that I give considerably more weight to executive purchases than director purchases. {snip}

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Why bother at all? Well, I have to admit I am now a very biased user of Netflix streaming. I started off an extreme skeptic because I found so little of interest in NFLX programming. Now, I find the service extremely useful for children’s programming and for providing me mobile, anytime, anywhere movie viewing. {snip}

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Weekly chart shows the previously firm support provided by the 2010 breakout point
Weekly chart shows the previously firm support provided by the 2010 breakout point


Support turns into resistance as NFLX attempts its first relief rally since its disastrous July earnings report
Support turns into resistance as NFLX attempts its first relief rally since its disastrous July earnings report

Source: FreeStockCharts.com

Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on August 14, 2012. Click here to read the entire piece.)

Full disclosure (at the time of writing): Long NFLX shares and puts; long FB shares and puts and short calls; long AMZN

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