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Why We Covered Our Netflix Short
By Whitney Tilson and Glenn Tongue, Managing Partners, T2 Partners LLC
Quick Take: Whitney Tilson on Iridium
By Value Investing Letter
Investing Lessons From 2010 – A Los Angeles
By Michael Kao
How Real Estate Investors are Creating Value i
By Craig Haskell
Lafarge - Building on the Recovery
By Marcelo P. Lima
These Low P/B Stocks are on Sale
By Jae Jun

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    THIS MONTH'S ISSUE

    Why We Covered Our Netflix Short
    By Whitney Tilson and Glenn Tongue, Managing Partners, T2 Partners LLC

    When the facts change, I change my mind - what do you do, sir?

    -- John Maynard Keynes



    In mid-December, we published a lengthy article on why Netflix was our largest bearish bet at the time. With the stock up nearly 25% since then, one might assume that we’d think it’s an even better short today, but in fact we have closed out our position because we are no longer confident that our investment thesis is correct. There are three primary reasons for this:

     

    1) The company reported a very strong quarter that weakened key pillars of our investment thesis, especially as it relates to margins;

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    Fri February 11, 2011, 20:44:40
    thanks for sharing this.

    Reed Hastings have been sharing Netflix strategy of slowly growing amount of money being paid to studios and thus growing library for many quarters. If you see amount of money Netflix is spending on streaming library over last few years, you can see its continuously increasing.

    Netflix may hit a wall, however, I would never bet against such astute and capable businessman like Reed Hastings.