NFLX, Netlik Inc.

Got this one wrong the first time (it was not a sell @ $156!) so here is another look.

nflx feb 2011 nflx data

The data on the right is from Bigcharts, if it is correct this is scary. Who says we are in a bear market? At $220 it has exceeded the meteoric rise of our own darling stock Nortel which never got higher than $124.55  Yield , there is none. P/E a very modest 74.27, even Japan did not get above 65. Short interest, I have never seen this before, a mere 21.48%.

The count on this thing might be 1-2 1-2-3-4-5 4-5 and just about complete once the upper trend-line is hit. This is obviously a short but I would not touch it other than with  put options. This is a momentum trade  if ever there was one, it will end in grief once the last “greater fool” leaves the stage. Ironically this is happening just as that other movie rental company is up against the wall.