Continue reading Netflix CFO Stepping Down

Netflix CFO Stepping Down originally appeared on BloggingStocks on Wed, 08 Dec 2010 09:00:00 EST. Please see our terms for use of feeds.

While I'm not necessarily going to say you can't still buy Netflix (NFLX), I will say that I just can't get myself to send in an order at current levels. During Wednesday's after-hours session, the shares gained 9%, reaching $167.33 in reaction to the latest quarterly report. That's not far from the 52-week high of $174.40. I'm not sure where the stock will end up during Thursday's regular session, but I doubt I'll be changing my mind about the online movie-rental business.

The chart does look good, though, doesn't it? Some of the sections may be rocky, but for the most part, the equity has been extremely resilient and a great buy on pullbacks. And with the 52-week low set at $47.56, you know that a lot of the true believers have made some good money (at least on paper).

Continue reading Netflix Earnings: Too Late to Buy?

Netflix Earnings: Too Late to Buy? originally appeared on BloggingStocks on Thu, 21 Oct 2010 09:30:00 EST. Please see our terms for use of feeds.

Early Thursday morning, Blockbuster (BLOKA) announced that it filed for voluntary Chapter 11 bankruptcy petitions. The move comes after an agreement with bondholders to recapitalize the movie and game rental chain.

According to the company, the filing in the U.S. Bankruptcy Court of the Southern District of New York applies to the company and its domestic subsidiaries, but not to the non-U.S. operations or the group's franchisees. Reportedly, the group has agreed on a deal with bondholders to swap secured notes for equity in a reorganized Blockbuster.

Continue reading Blockbuster Files for Chapter 11 Bankruptcy Protection

Blockbuster Files for Chapter 11 Bankruptcy Protection originally appeared on BloggingStocks on Thu, 23 Sep 2010 08:30:00 EST. Please see our terms for use of feeds.

TheStreet.com

Continue reading Is Blockbuster on the Verge of Bankruptcy?

Is Blockbuster on the Verge of Bankruptcy? originally appeared on BloggingStocks on Wed, 17 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Netflix Soars on Strong Fourth Quarter Numbers

Netflix Soars on Strong Fourth Quarter Numbers originally appeared on BloggingStocks on Thu, 28 Jan 2010 08:00:00 EST. Please see our terms for use of feeds.

I am in a bit of a quandary. You see, I love those paranormal shows like Ghost Hunters, Paranormal State, Most Haunted, and Ghost Adventures. This genre has taken over programming in a majority of the bigger cable channels and it is now trying to take the movie world by storm.

Don't get me wrong, movies about ghosties and ghoulies are nothing new, but a little independent movie company has decided to hop on the ghost bandwagon by making a film called Paranormal Activity. It was made for just $11,000 over a week -- yes, a week. Well, if you have heard any of the buzz about this film, you know that it is set to take movie viewers by storm.

Continue reading Is 'Paranormal Activity' the best movie you won't see?

Is 'Paranormal Activity' the best movie you won't see? originally appeared on BloggingStocks on Sat, 10 Oct 2009 16:10:00 EST. Please see our terms for use of feeds.

Could this be the next logical step in the video war between Blockbuster (NYSE: BBI) and Netflix (NASDAQ: NFLX)?

A report contends that Netflix will soon offer its "Watch Instantly" video-streaming feature for the iPhone and the iPod Touch, as well as the Nintendo Wii gaming console. Netflix already allows subscribers to manage their movie queue and search for movies via their iPhones, so watching their choices on the smartphone would be the next logical step.

Continue reading Is Netflix developing an iPhone application?

Is Netflix developing an iPhone application? originally appeared on BloggingStocks on Wed, 05 Aug 2009 12:50:00 EST. Please see our terms for use of feeds.

Walt Disney (NYSE: DIS) reported its fiscal third quarter earnings Thursday afternoon and, as expected, it was a tough quarter for the entertainment conglomerate.

We noted in our earnings preview that analysts were expecting to see lower profit, and that is exactly what Disney did this afternoon, reporting a 26% dip in quarterly profit.

The company matched analyst estimates by posting 51 cents per share for its fiscal third quarter ended June 30.

Continue reading Disney profit drops by 26%

Disney profit drops by 26% originally appeared on BloggingStocks on Fri, 31 Jul 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Hasbro (HAS) posts better than expected earnings

Hasbro (HAS) posts better than expected earnings originally appeared on BloggingStocks on Mon, 20 Jul 2009 08:40:00 EST. Please see our terms for use of feeds.

I found an interesting article in this morning's New York Post examining the poor performance of NBC Universal's Universal Studios of late. In fact, Jeff Zucker of NBC -- a part of General Electric (NYSE: GE) -- is "so concerned" about the unit's performance that he sent his chief financial officer to Hollywood for a month in order to "get more educated on the studio." Before I give my opinion on how to fix the studio (and you know I have one), let's take a look at how good the year has been.

Will Ferrell's Land of the Lost cost $100 million to make, but it brought in $44 million through last Friday. It is this catastrophic flop that caught the attention of Zucker and has him wanting answers from studio boss Ron Meyer. A source noted, "It's really the first time [Zucker] is asking Ron to explain things," as Meyer basically had free rein to run the studio. Zucker now wants to know Meyer's process for greenlighting movies and determining production and marketing budgets.

Continue reading Will summer flops doom Universal?

Will summer flops doom Universal? originally appeared on BloggingStocks on Mon, 29 Jun 2009 14:30:00 EST. Please see our terms for use of feeds.

Not long ago, I wrote about Google, Inc's (NASDAQ: GOOG) YouTube entering a deal with The Walt Disney company (NYSE: DIS) for some of the Mouse's short-form content. Now comes word that Sony Corporation (NYSE: SNE) is in talks with the video platform. Sony apparently wants to supply some feature-length content if a partnership can be struck.

Well, I think a deal will be struck, certainly. Sony obviously doesn't want to see a competitor like Disney getting all the YouTube action. Considering that YouTube is the name in online video, and that the majority of mainstream, casual web surfers know the brand and are comfortable in terms of using it, I can imagine that it doesn't take a genius to figure out that Sony needs to be in the YouTube business.

Continue reading Sony and YouTube discuss content deal

Sony and YouTube discuss content deal originally appeared on BloggingStocks on Mon, 06 Apr 2009 18:00:00 EST. Please see our terms for use of feeds.

Netflix (NASDAQ: NFLX) reported earnings for Q4 on Monday after the bell, and according to Trey Thoelcke's recap article, the DVD rental company blew past expectations. Wall Street was looking for $0.34 per share on a top line of $354.2 million. Well, Netflix delivered $360 million in net sales and $0.38 per share on the bottom line. That was an increase of 19% and 65% for the top and bottom lines, respectively.

Call me impressed. These are great numbers. In fact, Netflix added a net 718,000 subscribers in Q4. Last year at this time, the company added a net 415,000 subscribers. Now, let's look at the cash flow. According to the earnings release, Netflix is doing fine here, too. Free cash flow for Q4 more than doubled to $51 million. Free cash flow for the year also doubled to more than $94 million.

Continue reading Netflix beats expectations -- is the stock a buy?

Netflix beats expectations -- is the stock a buy? originally appeared on BloggingStocks on Tue, 27 Jan 2009 09:00:00 EST. Please see our terms for use of feeds.

So, I just read that Lions Gate Entertainment (NYSE: LGF) purchased TVGuide.com and TV Guide Network from Macrovision Solutions Corp. (NASDAQ: MVSN) for over $250 million. Here's the press release. The question I have is: Why would Lions Gate want to do this?

I know I'm going to be called pretty ignorant by some for even thinking to disagree with this move, but nevertheless, I disagree with this move. The reason is simple (to me, at least). If I were a shareholder of the company, I think I'd rather have management focus on creating content as opposed to spending a lot of money to buy up a platform. Sure, these TV Guide properties have a high level of brand equity and are indeed widely distributed. But a quarter of a billion dollars is a lot of money, a sum that could have been allocated toward new movie franchises and content acquisitions.

Does Lions Gate really want the hassle of integrating the TV Guide portfolio into its business? Won't that distract the company from focusing on its desire to build a great library of movies and television shows so that it can become an attractive buyout candidate someday? I mean, let me get specific for a second. Take the Saw franchise. That's getting a little long in the tooth, isn't it? I look at that quarter-billion bucks and see a bunch of seed money for a ton of new concepts. If only a few made it to Saw-level, then I can only imagine that it would help shareholder value.

Continue reading Lions Gate buys TV Guide properties: Why?

Lions Gate buys TV Guide properties: Why? originally appeared on BloggingStocks on Tue, 06 Jan 2009 00:47:00 EST. Please see our terms for use of feeds.

Continue reading Imax lovers can look forward to 5 new Disney (DIS) Imax movies

Imax lovers can look forward to 5 new Disney (DIS) Imax movies originally appeared on BloggingStocks on Wed, 19 Nov 2008 17:00:00 EST. Please see our terms for use of feeds.

Icahn doubles up on Lions Gate Entertainment originally appeared on BloggingStocks on Wed, 22 Oct 2008 11:25:00 EST. Please see our terms for use of feeds.

Since General Electric (NYSE: GE) is reeling from the financial crisis that's currently gripping Wall Street, there's no doubt that a little Hollywood magic might be in order, something to take its corporate mind off reality for at least a little while.

Well, according to The Hollywood Reporter, that might happen. Steven Spielberg needs to move his DreamWorks company over to a new studio, and it looks like NBC Universal is at the front of the pack in the race to secure his business.

The pairing of Spielberg and Universal would be logically sound. He certainly had a better time over at that lot than he did at Viacom's (NYSE: VIA) Paramount. There is, however, one other studio that is in the running. The article seems to imply that Disney (NYSE: DIS) has a shot with Spielberg as well, although the way I read it, the Mouse is a distant second in the contest. Disney wouldn't be a good fit. As much as CEO Bob Iger would love to hold meetings with the most famous director in Hollywood (and the world, for that matter), a DreamWorks distribution deal just doesn't make sense since the company is really into getting a lot of bang for its capital buck.

Continue reading Will GE win the Spielberg race?

Will GE win the Spielberg race? originally appeared on BloggingStocks on Tue, 23 Sep 2008 14:35:00 EST. Please see our terms for use of feeds.

Earlier in the month, I caught an interesting article from on Reuters about Disney (NYSE: DIS) and its movie division. The president of Disney Studios, Alan Bergman, speaking at a conference, stated that profit margins have jumped five-fold at the studio. The reasons behind this success include an aggressive attack on costs and a streamlined film slate. Instead of releasing a whole boatload of features, why not focus on Disney-branded flicks? That's what Disney has been doing, making bigger bets on a smaller number of projects. Things have been going so well that Bergman said that it was conceivable that the Mouse might not need to seek partnerships with funding entities to spread a portion of the risk. What this means is that, instead of offering up a percentage of celluloid profits to a funding corporation in exchange for an investment in the budgets, Disney will just pay for its movies itself and not transfer any risk. There's an obvious reason for this: Disney then gets to retain all profits instead of sharing them.

Well, it should be stated that Disney has not said that it will definitely do this. According to the article, Bergman just mentioned that it's possible that Disney could do this if it wanted to. My opinion? End outside financing. Hey, if I want to go and make a film, I'm going to have to use other people's money, I have no choice. But Disney? The company is big enough to not need any help in financing. The problem here is that human nature comes into play. When a studio division is doing poorly, then co-financing seems attractive. When a studio division is firing on all cylinders, then becoming risk-averse doesn't appear so fetching. Well, I think any media company producing films these days should really stop and try to understand the movie business for what it is. It's always going to be a risk. Doesn't matter if you have a huge star in a picture or not. It might fail either way. But when the windfall comes, when that big hit is found, you want to own 100% of the profits. This not only goes for Disney, but it applies to others such as Viacom (NYSE: VIA), General Electric's (NYSE: GE) Universal, and Time Warner (NYSE: TWX).

Continue reading Disney may not need to spread risk on movies, but should it do so anyway?

Disney may not need to spread risk on movies, but should it do so anyway? originally appeared on BloggingStocks on Sat, 20 Sep 2008 13:40:00 EST. Please see our terms for use of feeds.

Time Warner Inc. (NYSE: TWX) will be more conservative in the number of movies it produces in a 12-month period, according to this piece at The Wall Street Journal. As movies are becoming so expensive these days, and studios are becoming increasingly averse to taking on risk in the fickle world of celluloid, the thinking is that fewer investments in theatrical projects will concentrate funds on only the best concepts. These concepts will, in theory, be tentpole productions like The Dark Knight, ones that have enormous franchise potential to spawn sequels and merchandise windfalls and that oftentimes will be based on valuable source material, such as iconic comic-book characters. Sounds great, right?

Only problem is, it's wrong. I've argued this point in the past, and I'm here to argue it again. There's no question that studios such as The Walt Disney Company (NYSE: DIS), Viacom, Inc. (NYSE: VIA), News Corporation (NYSE: NWS), General Electric Company (NYSE: GE)'s Universal, and Sony Corporation (ADR) (NYSE: SNE) put precious capital at risk every single time they greenlight a project. But there's a huge illogicality at work here. Why would you want to put out less concepts as opposed to more? If the movie industry is such a gamble, wouldn't it be prudent to send more pictures to the marketplace?

Continue reading Is Time Warner making too many movies?

Is Time Warner making too many movies? originally appeared on BloggingStocks on Mon, 25 Aug 2008 15:40:00 EST. Please see our terms for use of feeds.

Lions Gate Entertainment's (NYSE: LGF) stock rose nearly 5% in after-hours trading on Friday after the movie studio issued its Q1 report. In fact, the stock hit $11 per share. What drove this reaction? Well, Wall Street was figuring on a loss for the company, somewhere around $0.05 per share, according to the AP. However, management fooled everyone by delivering a $0.06 per-share profit. Last year's Q1 saw a net loss of $0.45 per share. The top line was also awesome, rising 50% to $298.5 million. This also went beyond expectations.

These numbers are impressive to a certain extent. Management reported a nice backlog of revenues derived from movie projects that should be recognized in later quarters. There was a lower amount of expensed-costs related to distribution, an element that helped things out a great deal.

Cash flow, however, was an entirely different matter altogether. Lions Gate reported a much wider use of the green stuff this quarter. In fact, the metric more than doubled to nearly $150 million. Changes in working capital affected the cash flow, including increased investments in content productions and a larger booking of participations and residuals. Negative free cash flow also expanded, coming in at roughly $110 million this quarter versus $82 million one year ago.

Continue reading Lions Gate claws past expectations, but that doesn't mean its stock is a buy

Lions Gate claws past expectations, but that doesn't mean its stock is a buy originally appeared on BloggingStocks on Sun, 10 Aug 2008 11:10:00 EST. Please see our terms for use of feeds.

It's the Fourth of July weekend, and movie studios want to capture as much money for their films as possible, even if they've already been in the theaters for several weeks. No matter what, though, Sony (NYSE: SNE)'s Hancock, starring the always excellent Will Smith, is set to be the financial superhero of the weekend. Already, as of this writing, the film has taken in about $24 million through Wednesday, according to Boxofficemojo. The movie had some showings on Tuesday before its official debut in the middle of the week. It was number one on Wednesday, followed by Disney (NYSE: DIS)'s Wall-E. The robot flick so far has a total tally of around $86 million.

Poor Marvel (NYSE: MVL) and its The Incredible Hulk project. Will anybody be interested in seeing the big green guy now that Hancock is in the marketplace? Indeed, Hulk took in less than a million bucks on Wednesday, and it ranked number seven for that day. Looks like the Hulk fever is winding down at the multiplex, and it looks like Marvel's stock has had its run for the time being. The stock closed on Thursday at $31.20, well away from the 52-week high of $37.41. I still hold Marvel shares, and although there are no big catalysts on the immediate horizon, I have a long-term outlook on the company. Still, the trader in me wishes that I had lightened up on the position back at the $37 level to book some gains.

Hancock should do well north of $100 million once the Fourth of July holiday period has passed. The marketing, in my opinion, is very compelling, and from what I know about the story, it's a smart idea that provides a nice balance to the frivolous plots of Iron Man and Hulk (I'm using the term "frivolous" here with affection). Sony's scored a hit, maybe even a new franchise (I haven't seen the film, so I can't say if a sequel is feasible or not within the confines of the concept), but it won't do much to move the company's stock. Those looking to play the Hollywood game might want to wait for Marvel to pull back further from current levels.

Disclosure: I own Disney and Marvel; positions can change at any time.

'Hancock' will dominate the July 4th weekend originally appeared on BloggingStocks on Fri, 04 Jul 2008 11:30:00 EST. Please see our terms for use of feeds.