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Tilson now long NFLX!!!


T-bone1
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wow.  I am speechless.  Really priceless that he publicly announces he is buying but at the same time says "it is a small position".  I have nothing nice to say, so here is the article:

 

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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Does it seem strange to anyone else that a swing of 35% is the difference in his mind between overvalued to the point where he is willing to short it and undervalued to the point where he is buying it.

 

to me that really doesn't give much of a margin for error either way.

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