Netflix (NFLX) – Breaks Above EBV+6 – Higher Share Prices Expected!

Netflix is a bloggers dream come true.  Lots to write about featuring our model price work.

As always we will start with our model price chart as of Friday’s close.

Netflix with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

Netflix with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of NFLX subsequent to this post will be maintained on Facebook, here.

Just as a reminder this is what I said in my last blog on NFLX.

So, for fun let me strategize Netflix for you my readers.  As I have noted previously in my blog on Netflix’s 3rd quarter earnings, NFLX is trading between EBV+6 ($87.61) and EBV+5 ($55.17).  To me this is a battlefield where I want no part.

If NFLX were to transit up through EBV+6 this would be a BIG positive indicating higher future prices for NFLX.   Subsequently if NFLX transited back down through EBV+6, the investment should be sold.

There you have it, short and sweet and I wouldn’t change a word.

P.S.  As the song The Gambler reminds everyone, “You never count your money when you’re sittin’ at the table.  There’ll be time enough for countin’ when the dealin’s done.”  Yes, Mr. Icahn is up some $170 million in profit with most of his investment in Netflix purchased with in-the-money LEAP call options.  Not bad indeed!

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