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Netflix, Inc. (NFLX) provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. It also provides standard definition DVDs and Blu-ray discs to its subscribers.
The Company is changing itself from only a distributor of content to a content creator. Its new series called "House of Cards" starring Kevin Spacey was created by Netflix and it is exclusively distributed to its subscribers. The series is similar to a TV drama that typically has 13 episodes that are aired over 13 weeks. Netflix has done something novel with this series. It has placed all the 13 episodes on its web site. This is done to ensure that a subscriber is hooked to watch the entire season on his own schedule rather than a TV executive schedule. This could revolutionize the way viewers watch TV or movies.
Shares have formed a bullish "flag" following the company's recent earnings report and higher prices are expected for the shares. It beat the estimates and guided higher going forward. U.S. Postal Service is scheduled to announce cancellation of Saturday mail delivery. This may create a better opportunity for the shares.
52-Week Trading Range: $52.81 - $177.89
Entry Point: $176.50
Stop Loss: $167.67
Target Price: $194.15
We closed NFLX position at $194.35 for 10.5% gain. If you elect to stay in this position, adjust your stop losses upward.
