Thursday, 26 January 2012
US Stock/ Options Tip - Netflix (NFLX) back from Dead with marvellous earnings!
NETFLIX (NFLX) the once darling of Wallstreet, which rises from $50 to $300 within 2 years. However because of an incorrect decision to increase rental of DVD subscription which leads to 2 quarters missing its Earnings estimates, it came tumbling down to $60 in 7 short months. Pls see the chart on where the Letter "E" is. They are the earnings day. See the Gap Down??
This is what I discovered trading US stock. For a strong growth stock like Netflix, normally after 2 quarters miss, it has a HIGH chance of beating the 3rd. This is what I termed "3rd time Lucky" stock. Recently I posted a stock TIP on Goldman Sachs. It suffered the same fate after missing 2 consecutive earnings estimates.
For Netflix, this stock is back from the dead. We can play this stock again and again this quarter after it breakout or when it is at the bottom of the box. Today it gaps up. Might open at $107. After consolidating, it will continue its ascent to $125. Remember to sell at $123 if it reaches this target! For options players, you may also play straight call ITM options again and again upon breakout!
For the earnings report, pls check this website:
· 美国 股市担心苹果业绩，巴菲特却大胆投资！ 道琼斯昨晚闭市在 25080 ，掉了 205 点。在这 10 月 11 月道琼斯的波动都相当大。有很多投资朋友开始怀疑熊市是不是已经来临了。我的答案是还没有。这个跌幅反而是好时机进场。大家不用太担心。 ...