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Whitney Tilson's Long Lost Netflix Short


Parsad
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I guess I have to give the guy credit for moving like the wind on this stuff but does he immediately phone the media or do they hound him for a quote on days like this?

 

It seems that his moves are always public knowledge before the trade pie has even cooled!

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;D ;D ;D ;D ;D ;D ;D ;D

 

http://blogs.wsj.com/overheard/2011/10/25/tilson-buys-netflix-on-tuesdays-crash/

 

 

 

Whitney Tilson is ready for a rematch with Netflix. Only this time, he’ll be in the other corner of the ring. Having been short when the stock went to the moon, the hedge-fund manager is now at risk of catching a falling knife. Mr. Tilson tells us in an e-mail that he bought the stock this morning after it tumbled 35%:

 

“It’s been frustrating to see our original investment thesis validated, yet not profit from it.  It certainly highlights the importance of getting the timing right and maintaining your conviction even when the market moves against you.  The core of our short thesis was always Netflix’s high valuation.  In light of the stock’s collapse, we now think it’s cheap and today established a small long position.  We hope it gets cheaper so we can add to it.”

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What on earth is going on here.  He closed the short around February, right?

 

"After taking a beating as the stock surged, he closed his position in February, when the stock was trading well above $200".

 

So when he put the short on he thought it was worth a lot less than $200 I imagine.  If it were me, I wouldn't short anything I was sure was worth less than half the market price (and probably not even then).  So that begs the question, what did Tilson think Netflix was worth when he put the short on?  $100?  $50?

 

Now he buys at ~$75.  But surely the business has deteriorated since the time he put on his short, right?

 

What is the logic here?

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What on earth is going on here.  He closed the short around February, right?

 

"After taking a beating as the stock surged, he closed his position in February, when the stock was trading well above $200".

 

So when he put the short on he thought it was worth a lot less than $200 I imagine.  If it were me, I wouldn't short anything I was sure was worth less than half the market price (and probably not even then).  So that begs the question, what did Tilson think Netflix was worth when he put the short on?  $100?  $50?

 

Now he buys at ~$75.  But surely the business has deteriorated since the time he put on his short, right?

 

What is the logic here?

 

I completely agree, it's baffling. I remember reading somewhere he put the short on in the $150's originally. So he thinks its worth much less than $150. The business has deterioted quite a bit since then and now he thinks its a buy at $75.

 

Truly baffling

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I guess I have to give the guy credit for moving like the wind on this stuff but does he immediately phone the media or do they hound him for a quote on days like this?

 

It seems that his moves are always public knowledge before the trade pie has even cooled!

 

The stock fell today.  How the heck would the media know what he is buying if he didn't disclose it.  You know what they say, there is no such thing as bad press!

 

Although, that's probably why we're managing such a pittance with our record.  I just turned down another interview last week.  You guys are the only ones who have to listen to me talk about myself.  I hope you are enjoying it as much as I am!  ;D  Cheers!

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The stock fell today.  How the heck would the media know what he is buying if he didn't disclose it.  You know what they say, there is no such thing as bad press!

 

Once you have a reputation as a media-friendly person, the journalists probably start calling you all the time to get a quote for their story about something else or to have your comments about the latest thing you are involved with...

 

Although, that's probably why we're managing such a pittance with our record.  I just turned down another interview last week.  You guys are the only ones who have to listen to me talk about myself.  I hope you are enjoying it as much as I am!  ;D  Cheers!

 

Parsad, you are a gentleman and a scholar and your posts are the highlight of this forum! The more you post, the happier I am!

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  • 6 months later...

 

 

I just turned down another interview last week.  You guys are the only ones who have to listen to me talk about myself.  I hope you are enjoying it as much as I am!  ;D  Cheers!

 

We are all ears. You can talk as much as you want :)

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I guess I have to give the guy credit for moving like the wind on this stuff but does he immediately phone the media or do they hound him for a quote on days like this?

 

It seems that his moves are always public knowledge before the trade pie has even cooled!

 

The stock fell today.  How the heck would the media know what he is buying if he didn't disclose it.  You know what they say, there is no such thing as bad press!

 

Although, that's probably why we're managing such a pittance with our record.  I just turned down another interview last week.  You guys are the only ones who have to listen to me talk about myself.  I hope you are enjoying it as much as I am!  ;D  Cheers!

 

You need to get out there and start whoring yourself out.  Then maybe people will realize that BAC is actually a bargin.  Then again nevermind, I'd like to buy at these levels for another 6 months  ;D

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