Hope everyone is looking forward to a nice weekend. Some of my neighbors have been without power for a few days due to PG&E shutting down preemptively on the two-year anniversary of the Paradise fire. That company is looking very troubled these days.
We sent out the BABA report last night. Had a nice boost this morning. The valuation there is fairly cheap compared to its peers (for obvious geo-political reasons). I like the areas they’re moving into beyond B2C eCommerce which is B2B eCommerce and cloud. There’s a high probability that there could be some momentum here, in my opinion.
Chainlink is up about 60% in the last couple of weeks, and along with Knox’s technical analysis both in the PDF and the forum, I think that one played out nicely with many of our readers getting in around the $1.60 mark. About a month later, it’s at $2.75.
Slack got a big boost today due to coverage that 37 hedge funds have initiated positions. Stock is trading up 9%.
I have an Op-Ed coming out next week in MarketWatch on Netflix. I actually like this company for a very long buy-and-hold but it’s going to get beat up for awhile. Knox will give you some ideas on a dirt cheap price and I will not be initiating a Netflix position myself until I get it dirt cheap. Too much risk due to market perception.
The Op-Ed on Netflix covers the slow proliferation of OTT globally and how Netflix is set up to be the leader as we hit global saturation between 2030-2040. This is the decade when the world will have broadband (we are at roughly 50% access to broadband right now with most of that percentage being very slow speeds).
I believe Netflix could have 1-3 billion subscribers if you figure 50-70% penetration in developed countries and 20% penetration in developing countries with 10 billion population in the 2030 decade. I have a lot of statistics in the upcoming analysis that supports this. But, this stock is going to get really beat up, in my opinion, and I’m on the sidelines for now. It’ll be on my market crash and/or recession shopping list. I’m really curious to see what Knox says on the rock bottom price, as well. He’ll have that for you next week.
Have a great weekend, Beth