April 21, 2007

Sorry I haven’t been here for a while, but I promise I’ll be back to writing more often soon.

Capital One-Yesterday Capital One released quarterly earning results that were just terrible, and they even lowered their full year guidance. We see that the trends from the 10-K (year 2006) have significantly changed and more people have been late on their payments and even defaulted than last year. I wouldn’t buy it until it goes down another 10% or so- its not “best of breed”

Netflix  continues to be hurt by Blockbusters total access program, as we see by a slow down in the # of additional subscribers and an increase in churn (the % of people who leave). Having said that, I’m not sure that Blockbuster can keep their prices this low forever, and when they raise prices people will flock back to Netflix. Id continue to own Netflix solely based on their fabulous business model and reasonable valuation

Warner music continues to plummet, investors seem concerned about whether or not a merger with EMI will happen at all and also about the terrible music market. Lets see how low it can go before buying

Yellow Roadway and Electronic Arts have performed well since I wrote about them. In fact, I bought EA two days ago on the $2 decline. There’s no reason to sell either of these.  I’m looking forward to Corporate Executive Board’s earning release on wed, the 25th. I’ll post about it afterwards.