Since I’ve been doing this for a couple weeks now I’d like to update everyone on some of the stocks I’ve written about.
On January 12th, I wrote about Netflix and how I think that the long-term story may be better than the Street percieves. Its down about $1/share since then due to some selling before earnings, and then a quick pop afterwards. They reported another big increase in subscribers and rapid growth in profits. What remains to be seen is whether more new subscribers will choose Blockbuster over Netflix which will hurt margins, lower prices, etc.
My January 15th piece on YRC Worldwide came right before a Barron’s positive article about the company and a Wachovia upgrade to outperform. Combine these two factors with recent data showing that the US economy is “trucking” along fine, and the stock has had quite a nice move, up almost $4 since then. I don’t really see any reason to sell this stock- investors still think that it’s cheap and I think that the risk/reward profile is heavily in our favor.
Electronic Arts hasn’t done much in the past few weeks. Recent concern about slow PS3 sales have hurt the stock a little, but I’d like to reiterate my position that any weakness should be used as a buying opportunity.
Both Paychex and Warner Music Group have stalled recently. I’m still researching these companies and will write more about them when I learn more…
So thats it for now. I’ll probably write about Blue Nile soon, I think its a great company.
-Da Stock Geek