Wednesday, October 31, 2012

Did you buy Netflix ?

This blog is a continuation of one of my previous blog posts about friendly takeovers. I argued that when an activist like Carl Icahn invests on a company, it is a great short term opportunity to buy the stock and sell it short term. Another proof-of-concept, Carl Icahn bought 10% stake in Netflix and Netflix gained about 14%.

Chart 1: Stock price increase in Netflix












Table 1: The investment opportunity 

1 day return
13.88%
Annualized basis
40116436056240800000000%

Now I am sure that most of you would be able to appreciate this kind of investment opportunities. In the next week, I am going to make a case relating to the timing of this kind of investment. See you soon.

Stay hungry! Stay Foolish  

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