Million Dollar Portfolio

Jim cramer uses that line a lot and it’s definitely true when you are trading stocks.

I sold my Etrade(ETFC) position today at $5.61 for about a $100 profit and my position in Netflix (which I still like) at $24.45 for about a $75 profit. The reason I sold Etrade so quickly is detailed in my post on The Proficient Investor but basically it was a momentum trade on a stock that I thought was severly oversold.

Netflix (NFLX) on the other hand just hasn’t performed like I wanted since buying the stock early in the summer. Earnings are fine and the fundamentals are fine even though other analysts would have you think Blockbuster (BBI) is a better play because they have physical stores…I say phooey. Blockbuster is going down hard and I think Netflix could easily buy them out if they wanted to.

I’d like to see Netflix between $20 and $23 before I pick it up again. I think long term the growth aspects are good but we’ll have to wait for Q4 earnings before seeing where it’s really going. I think Netflix is largely unaffected by the holiday season since their core business is in renting not selling DVDs and their rumored expansion to Playstation Home and Xbox Live is still in development.

With these things on the horizon however, Netflix is poised to be the market leader in home delivery of first run DVD titles to consumers which is why I still think it’s a buy but I want to see it come in to near 15-18 times earnings.

Computer predicted stock trades, never guess again!

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