First, let me just say that Graham-Doddsville is an incredibly pretentious name for a blog not penned by Buffet or one of his investing buddies. But, as one of my best friends said once, I'm one of the most pretentious people he's ever met. It's a gift.
In all seriousness, though, the title of my blog is more a goal for myself, and the aim of the blog in general. I hope to achieve returns that just sniff at the returns of the super-investors of Graham-Doddsville. This blog will chronicle my investment decisions, hopefully lucidly and intelligently; may they be profitable ones.
So, onward. NFLX reported today, and in a classic proof of Bill Miller's comment about the market being more about expectations than anything, it easily exceeded analysts' low expectations, and shareholders were promptly rewarded by a 14% afterhours pop, as buyers piled back in to a stock that was 34% cheaper just a few months ago (before the gap up). The Motley Fool did an excellent analysis on Netflix's dirt-cheap cash flow before the stock nose-dived: http://www.fool.com/investing/general/2007/03/15/ebay-vs-netflix-netflix.aspx?terms=NFLX&vstest=search_042607_linkdefault
Those who bought following that or similar reasoning, then dollar-cost averaged down, are being rewarded today for their patience. A side-note: even the fairly skilled investors at the Motley Fools' interesting CAPS community have been poo-pooing NFLX,as it has a 2-star rating out of 5, showing just how low expectations were. Then again, GOOG has been a 2-star stock at CAPS for a while, too, and I think we know that score. Perhaps I give the CAPS players too much credit.
