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SubscriptionsSites I Read
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| Netflix lowers two of its subscription plans. That can mean Netflix is struggling to gain new subscribers. Question is, is blockbuster's gaining subscribers on Netflix expense? If Blockbuster's is not gaining new subscribers, will they lower its membership price again? If they do, it will lower its profit margin. In the long run, I really believe that BBI can sustains the competition. A potential risk in the long run is Netflix may offer a bid to buy hollywood videos chain stores. If Netflix is to do that, BBI is no longer has a competitive edge.
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| Bought BBI for $4 on June 12, 2007. Here is the checkoff list for BBI
1) Track at least 4 weeks before buying
Tracked more than 1 year, saw a drop from 52 weeks high to $4.30, place a limit order at $4
2) Price must be relatively low compared to 52 weeks high (need to revise to find out percentage point)
52 week range was from $3.51 to $7.30
3) Be able to hold for more than 1 year
Yes
4) Company must have a potential future market, competitive
Came out with new plan where customers can exchange videos at stores, lower monthly price to compete with netflix....last quarter, almost double new memberships compare to netflix
5)
Good institution ownership: between 70-80 percent if there is a weak
insider ownership. at least 30% if there is strong insider ownership.
No, institution ownership was over 100%
6) New products that will change the industry or be able to compete with competitors
Yes, see reasons from number 4
7) Must be in the top 3 in its industry in terms of sales, size, and revenue
Yes
8)
Dont buy when a company is still in R&D (e.g biotechs) or new
infrastructure (e.g. verizon laying optic fiber). Track it and wait for
others to pay for those costs--wait for stock price to drop when those
investments are not paying off as investors are impatiently waiting for
their returns, in the beginning.
Marketing costs of new plans ate into revenues from last quarter, investors oversold due to the news, it was about time to jump in before it goes back up.
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| Checkoff list to screen stocks to buy:
1) Track at least 4 weeks before buying
2) Price must be relatively low compared to 52 weeks high (need to revise to find out percentage point)
3) Be able to hold for more than 1 year
4) Company must have a potential future market, competitive
5) Good institution ownership: between 70-80 percent if there is a weak insider ownership. at least 30% if there is strong insider ownership.
6) New products that will change the industry or be able to compete with competitors
7) Must be in the top 3 in its industry in terms of sales, size, and revenue
8) Dont buy when a company is still in R&D (e.g biotechs) or new infrastructure (e.g. verizon laying optic fiber). Track it and wait for others to pay for those costs--wait for stock price to drop when those investments are not paying off as investors are impatiently waiting for their returns, in the beginning.
List to remind self when being trigger happy:
--Dont ever lose money
--Dont ever lose money
--Patience
--Patience
--It is OK to hold cash
--Do your own research--listen to the best of the best (billionaire investors...not millionaires).
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