Once you get past the hype, there's little chance for long-term gain with this stock.
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One firm has been killed on its short position, but it's sticking to its guns.
Tilson, the founder of investment firm T2 Partnerships, even put out a "Why we're short Netflix" presentation Thursday. You can download it here.
Netflix shares are up about 1% Friday to $183; a year ago they were at $53. "We've lost a lot of money betting against Netflix, which is currently our largest bearish bet," the presentation notes. Here are the main reasons Tilson continues to short the stock:
Airlines turn to fees instead of service to boost profits. Gap slips up by selling 'Made in USA' bags made in China. Starbucks' tormented love-hate relationship with Kraft.
Here's our weekly roundup of the dumbest news in business.
5. High-flying airline fees
According to a report released Monday from the Bureau of Transportation Statistics, U.S. airlines collected about $4.3 billion in fee revenue during the first three quarters of 2010. That's $4.3 billion in fees added to the coffers without airlines having to improve service. It's roughly equivalent to the industry's anticipated total profits for the year.
The investor has a considerable interest in the company, which expects growth in its core business next year.
By Don Dion, TheStreet
This week, GE CEO Jeff Immelt provided an optimistic forecast. In comments made to investors during the company's annual meeting, he explained that, though demanding, the steps taken after the global economic crisis have helped GE get back on track. He expects core businesses to grow in 2011.
Immelt pointed to China as a promising region for the company in the new year, saying the company expects to see high-double-digit growth.
After blowout reports from Oracle, RIM and Accenture, stock futures should be roaring today.
I don't like days when futures are up huge early and then we get a total slam-down, which seems to have happened nearly every time stock futures have risen abruptly in 2010.
Yet today they should be up. Having just read through the conference call and post-analyst notes on Oracle (ORCL), Research In Motion (RIMM) and Accenture (ACN), I am astounded at how these companies are doing.
"Everyone" knew that Oracle was doing well, but the growth the company is talking about is the kind you would expect from a much younger company. I am continually surprised when I read a call like that by how many companies don't already have Oracle or database management software. Or that so many are obviously not thinking of Salesforce.com (CRM).
While the big-box discounter is not a deeply discounted stock, it has goodness at its core.
Fool analyst Alyce Lomax believes it's perfectly possible to aim for above-average returns and social dividends when investing. If you agree, you might want to follow her socially responsible portfolio.
Rex Moore, Motley Fool Top Stocks editor
A broad fund may be the best way to play a rocky period for the airline industry in 2011.
By Don Dion, TheStreet
After an early dip, however, FedEx shares bounced back, rising more than 2% to $94.36 in afternoon trading. The report came just days after FedEx announced that Dec. 13 was its busiest day ever in terms of deliveries, when it reportedly carried 16 million packages.
Any good news from FedEx bodes well for transportation heading into the new year. However, investing in the industry may prove tricky in 2011. Ultimately, the best way investors can take a long-term approach to this sector is through a broadly focused ETF such as the iShares Dow Jones Transportation Average Index Fund (IYT).
The mining-equipment maker beats expectations and raises guidance.
Everyone's ditching bonds and their pitiful yields. So what should you do with your portfolio?
But that's all changed. Now investors are fleeing bonds, shaking their heads at 2% returns. It's time to go for the big bucks, apparently. About $400 million flowed out of taxable bond funds (on a net basis) during the first week of December, MarketWatch reports.
Some of that might be year-end profit taking, but bonds are clearly falling out of favor. OK, so what does that mean for your portfolios? Don't follow the trend and ditch bonds -- they should still be a big part of your investing strategy.
'Choc Finger' grabbed a huge amount of the world's cocoa this year. Now he's trying to sell it back.
Anthony Ward bought so much cocoa, in fact, that people worried he was trying to corner the market and raise prices. But his chocolate binge has turned out to be a very bad investment.
Cocoa has performed miserably since July to become the worst agricultural performer this year. And Ward, nicknamed "Choc Finger," has started to sell off his hoard.
To avoid correlation with the US dollar, try microcap stock funds.
By Gary Gordon, TheStreet
Before 2000, a strong dollar was often synonymous with a strong U.S. economy. Over the past decade, however, greenback strength has often signified a fear of riskier assets like stocks, commodities and emerging-market currencies.
In 2010, the correlation between stocks and dollars only intensified. When the dollar trended lower, riskier stock assets flourished. And when the dollar moved higher, stocks limped their way toward the closing bell.
There are other reasons for the coupling, however. Commodities are priced in the world's reserve currency. It follows that miners, explorers and materials companies may generate larger profit margins when it takes more dollars to pay for "stuff." Consequently, materials-heavy iShares Emerging Markets (EEM) had a negative 0.78 correlation coefficient to PowerShares Dollar Bullish (UUP) in 2010.
Coca-Cola will be the first of our portfolio anchors.
For our Motley Fool pick of the day, we turn to ... me. I'm building out a real-money portfolio for the Fool, and my first buy is a "set and forget" stock I can be comfortable holding for decades.
Rex Moore, Motley Fool Top Stocks editor
After narrowing the field, it's time for the first buy for our Rising Stars "multivitamin" portfolio. If you can pretend for a moment you didn't read the clever promo line above, I'll masterfully build the suspense for you.
In other tech news: Twitter raises $200 million, while Facebook is likely to generate revenue of $2 billion this year.
By Olivia Oran, TheStreet
Apple (AAPL) shares were gaining 0.3% Thursday to $321.37 after the company announced that its Mac App Store will open on Jan. 6. The store, which will be similar to the App Store available for the iPhone, iPad Touch and iPad, will be available in 90 countries at launch.
In other tech news, Google (GOOG) had the largest share of the U.S. core search market in November, with a 66.2% slice, according to industry tracker ComScore. Yahoo! (YHOO) and Microsoft's (MSFT) Bing followed, holding 16.4% and 11.8%, respectively.
Shares of Google were rising 0.4% to $592.59, while shares of Microsoft were slipping 0.3% to $27.76.
After hitting a wall of skepticism before Wednesday's close, the market is waiting for more positive news.
I reiterate that I think the sell-off was related to options expiration and that hiring, which is crucial, is getting better, not worse. That's the immunity from the illness of Europe that so many people keep keying on. They should be keying in on good industrial production and retail sales, but you can go up for only so long on those two.
The aircraft manufacturer is raising prices -- a sign that airlines are getting serious about buying.
Changes are afoot in the stock market that suggest now is the time to prepare for a significant market correction.
After months of mostly uninterrupted gains, stocks are beginning to stall.
Traders moved into defensive, noncyclical sectors for the third day in a row Wednesday as staples, health care, and telecom stocks lead the way. Cyclical, economically sensitive stocks in the semiconductors, technology, real-estate and transportation sectors are all showing serious underperformance relative to the broad market.
The strength in defensives, combined with the weakness of cyclical stocks, suggests investors have their doubts about whether the typical Santa Claus rally will materialize this year. Along with narrowing market breadth, the subject of my last post, this is a sign that a market correction is coming. Here's why.
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[BRIEFING.COM] The major indices have dipped from their best levels of the morning but still hold solid gains. Not surprisingly, the Advance-Decline line at the NYSE and Nasdaq skews decidedly in favor of advancing issues. It is nearly a 3-to-1 margin at the NYSE and roughly a 2-to-1 margin at the Nasdaq.
One stock -- and one of the most notable -- that is not among the advancers is Apple (AAPL 563.10, -4.80). There isn't any specific news behind the decline. ... More
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