NFLX:
I am very bullish on this stock. Many believe this stock is overhyped and will lose market share once competitors get to the market. However, Netflix has done what all great tech stocks did: Do it first and do it well. Yes anyone else can start a site that does what Netflix does, but Netflix will win for the same reason they won at the DVD rental business. They were there first and they do a good enough job that customer stick with them. Anyone can theoretically replicate Google or Amazon. But the first mover advantage means that they win.
At the moment I would not recommend buying it as I expect another pull back to a least the 50 day moving average. I myself own this one and might look to take some profits if the price rises into the $250-$260 zone, buying again on the pullback. You will notice that the trend for NFLX is to rise quickly above the 50 day moving average and to then fall back to it. Until this trend is broken, I would expect it to continue.
PAY:
My do I wish I had come across this stock earlier. I currently do not own it but I wish I did! This company is the leader in the up and coming idea that you will use your cellphone as a payment device. For me it is too high in the trend to purchase at the moment. However, if it would fall back toward the 50 day moving average I will pick it up. At this point I would probably put a buy order at around $50. This is a risky play as it is very volatile. But until it breaks out of the current trend line I will remain bullish.
CAT:
I almost bought this stock in mid January. What a mistake not to! (I'm not claiming to be perfect!) I'll be keeping an eye on this one to spot an entry point if it comes back down. With inflation on the rise, food prices will be rising. This creates more demand for companies that provide equipment. Another one to watch is DE.
Next time: Commodities!
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