A Tale of two Companies: Netflix (NFLX) and Blockbuster (BLOAQ)

[Kurrency]

Phew its been a few months since I last came around

Yesterday I spent an hour writing a blog post comparing netflix and blockbuster's new run for re-emergence from bankruptcy.
I will only post snippets here as not to make it a boring and long post but if you want to read entire 1000 word post i'll provide a link: A Tale of two Companies: Netflix ($NFLX) and Blockbuster (BLOAQ)

Lets start with Netflix $NFLX king which Since January 2010 alone is up a whopping 245% from $55 to $190 a share. Being a technical analysis freak I always look at the chart to see how the stock has done in the past and whether its shot up too far from the ground (my moving averages trio) and as you can see below the real ground is the 110 ema which right now stands at 151.37. I also use two shorter term averages in case I don't want to wait for a stock to go that low but with Netflix being $40+ above ground I am willing to wait.
as you can see NFLX hit the 30EMA ($180) price today and bounced hard.

next Blockbuster..
Below is a chart using the exact averages as above but this one isn't as pretty and Blockbuster (BLOAQ) former $BBI has been "under ground" for quite some time. Even with the recent doubling of its price from 5 cents to 10 cents the ground hog hasn't been able to stick its head above the 12 cent ground for long. Back in May the ground hog (Blockbuster) poked its head, didn't see a shadow and that resulted in 6 more months of winter. So technically speaking, 12 cents has to be broken before the stock goes anywhere gooood.
Here too Blockbuster shot up another 25% today to close at 13 cents.

Anyways just thought i'd share and glad to be back
Again the Link to the entire article: A Tale of two Companies: Netflix ($NFLX) and Blockbuster (BLOAQ)

Happy Trading!
-K

 

[NickElliott]

Hi K,

I've been following the exact same story! Thanks for your post. I picked up NFLX when it was at $140 and although it's been a great ride... it's outside of my "rules" - I only trade stocks priced between $10-$100 as part of my newbie regime.

I was in the US for a good chunk of this year and they have their vending machines in the majority of WalMarts all over the country - at $1 per night movie rental it's no wonder their volumes are growing... whether not this is the 'future' of how Americans consume their movies will be another issue... I'll definitely be following it closely.

 

[Kurrency]

so far all according to plan. even my thought about netflix not being able to sustain its current monthly rates for much long seems to have hit mainstream media.

Blockbuster's move has been a healthy 70% since that chart on the original post.

Netflix is staying just on the 30EMA support of 183 after making big up and down waves the past week or so.


:smart:

 

[DionysusToast]

Hi K,

I've been following the exact same story! Thanks for your post. I picked up NFLX when it was at $140 and although it's been a great ride... it's outside of my "rules" - I only trade stocks priced between $10-$100 as part of my newbie regime.

I was in the US for a good chunk of this year and they have their vending machines in the majority of WalMarts all over the country - at $1 per night movie rental it's no wonder their volumes are growing... whether not this is the 'future' of how Americans consume their movies will be another issue... I'll definitely be following it closely.

Whatever happened to "I've just started paper trading" ???

So you've been live trading since September have you ?

We can all pick winners in the rear view mirror. Credibility seems not to worry you at all, does it?

 

[NickElliott]

Just been following the story toastie... didn't say I traded it. It would be too expensive for me anyway as it's over $100 a share.

 

[DionysusToast]

Just been following the story toastie... didn't say I traded it. It would be too expensive for me anyway as it's over $100 a share.

I've been following the exact same story! Thanks for your post. I picked up NFLX when it was at $140 and although it's been a great ride...

My mistake - when you say you picked up NFLX when it was $140 and that it's been a great ride - I naturally assumed you were talking about trading it.

Honestly Nick - you are so bad at this game, I am starting to feel sorry for you.

Do you have another job lined up yet ?

 

[NickElliott]

I can see the confusion! But to clarify I meant picked up the story... Just been following and reading - no trading yet. Are you following the NFLX story too?

 

[NickElliott]

Oh and I suppose for the comment about my job to make sense to anyone else they should know about http://www.trade2win.com/boards/trading-journals/111258-lets-play-us-markets-6.html this...

 

[Kurrency]

Oh you guys raised my hopes over nothing with those posts

at least Blockbuster up a healthy 130% (35% of it today) since 10 cents.

only stop now is 20-23 cent are where 23 cents is the simple moving average of 200 days and 20 cents is exponential average.