Netflix (NASDAQ: NFLX ) is the best performing stock on the S&P 500 in 2013 -- up more than 135% in four months. It's a different story from a year ago, and the complete opposite of what was happening around summer 2011. Coming up on two years since the complete disaster that was Netflix's policy changes and DVD spinoff, the company has now soared to new heights and is likely to be bound for more. While it was not the actions of any one party, there is an important lesson for businesses and investors to learn. As demonstrated by Reed Hastings, here is how to make a full recovery from a serious case of business idiocy.
Dream come true
For the value-conscious and technological skeptics among us, it was a joyous time when Netflix plunged from its $300-per-share days to near $50.
"We told you! Sky-high valuations have no place in the reality of investing."
The thing is, it wasn't a market correction of Netflix's valuation and an understanding that paying 100 times earnings for a company is completely absurd. It was punishment. When Reed Hastings decided to shed the company's DVD delivery business and push up prices on streaming, nearly everybody got ticked off. Eight hundred thousand subscribers fled in the fourth quarter of 2011, according to a recent New York Times article. It wasn't a quick lashing, either, as the stock shed value for more than a year and Hastings was lambasted again and again for poor leadership skills. He took the criticism graciously and admitted quickly the errors of his ways. That was step one.
Top 10 Performing Companies To Watch For 2014: CMS Bancorp Inc.(CMSB)
CMS Bancorp, Inc. operates as the holding company for Community Mutual Savings Bank, which provides various banking services to individuals and small businesses primarily in Westchester County and the neighboring areas in New York State. It offers various deposit products, including savings deposits consisting of passbook and statement savings accounts; interest- and non-interest-bearing demand accounts; money market accounts; and time deposits. The company also provides loan products comprising residential, commercial real estate, and consumer loans, as well as multi-family, non-residential, construction, home equity, and second mortgage loans. In addition, it invests in various assets, including securities of various government-sponsored enterprises and mortgage-backed securities. As of September 30, 2010, CMS Bancorp operated 1 corporate office in White Plains and 5 retail banking offices in Westchester County, New York. The company is headquartered in White Plains, New York.
Top 10 Performing Companies To Watch For 2014: (GLAXO.NS)
GlaxoSmithKline Pharmaceuticals Limited, a research-based healthcare and pharmaceutical company, provides prescription medicines and vaccines in India. Its product portfolio comprises prescription medicines that range across various therapeutic areas, such as anti-infectives, dermatology, gynecology, diabetes, oncology, analgesic, anti-inflammatory, anti-parasitic, gastrointestinal, endocrine, immunosuppressant, nutritional, central nervous system, and cardiovascular and respiratory diseases; and vaccines for the prevention of various diseases, including hepatitis A, hepatitis B, invasive disease caused by H, influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, and cervical cancer. The company was founded in 1924 and is based in Mumbai, India. GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc.
Top 5 High Tech Stocks To Invest In Right Now: Keynote Systems Inc.(KEYN)
Keynote Systems, Inc. provides Internet and mobile cloud monitoring and testing solutions worldwide. The company?s Internet cloud products and services comprise Transaction Perspective for visibility into the performance and availability of Web transactions; Application Perspective, a Web application monitoring service; Cloud Application Perspective that provides software-based performance monitoring; Private Agents for the performance of mission critical extranet and intranet applications; Streaming Perspective to measure, compare, and assure the performance of audio and video streams; and Performance Scoreboard, a custom dashboard to monitor Web performance. Its Internet cloud products and services also include Enterprise Adapters to integrate performance measurement data into enterprise systems management platforms; Keynote Internet Testing Environment, a desktop tool for real-time testing, diagnosing, and troubleshooting Web performance issues; LoadPro, a Web load tes ting service; Test Perspective, a self-service load testing service; Red Alert to test devices connected to the Internet; and consulting services, such as performance insights, Web site performance assessment, automated reporting, and custom competitive research. In addition, the company?s mobile cloud products and services primarily consist of System Integrated Test Environment System to test and measure the quality and reliability of mobile networks and applications, and content delivery for mobile operators; GlobalRoamer to certify and validate roaming agreements; Mobile Device Perspective to enhance the quality of mobile content, applications, and services; Mobile Web Perspective to monitor and troubleshoot the quality and performance for mobile Web sites; and Mobile Internet Testing Environment, a desktop tool. Further, it offers professional services, mobile competitive monitoring and analysis, and mobile insights. The company was founded in 1995 and is headquartered in San Mateo, California.
Top 10 Performing Companies To Watch For 2014: Xaar(XAR.L)
Xaar plc engages in the development and commercial exploitation of a patented inkjet printing technology in Asia, Europe, the Middle East, and the Americas. Its product line comprises inkjet development systems, printheads, printhead matrix, inks, ink supply systems, and drive electronics. The company also provides training and consulting services. Its products are used in graphics, packaging, and industrial print sectors. Xaar plc was founded in 1990 and is headquartered in Cambridge, the United Kingdom.
Top 10 Performing Companies To Watch For 2014: Garmin Ltd.(GRMN)
Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products for the automotive/mobile, outdoor, fitness, marine, and general aviation markets worldwide. The company offers a range of automotive navigation products, and various products and applications designed for the mobile GPS market; GPS enabled handheld products for hunters, hikers, geocachers, outdoors enthusiasts, cyclists, and golfers; dog tracking systems; tracker systems; and training assistants for athletes. It also provides handhelds, network products and multifunction displays, fixed-mount GPS/chartplotter products, instruments, fish finders, radars, autopilots, VHF radios, marine networking products, and sounder products. In addition, the company offers GPS-enabled navigation, VHF communications transmitters/receivers, multi-function displays, electronic flight instrumen tation systems, automatic flight control systems, traffic advisory systems and traffic collision avoidance systems, terrain awareness and warning systems, instrument landing system receivers, surveillance products, audio panels, and cockpit datalink systems. The company?s sells its products through a network of independent dealers and distributors, as well as through original equipment manufacturers. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland.
Advisors' Opinion:- [By Sean Williams]
Stateside, Garmin (NASDAQ: GRMN ) is seeing many of the issues I project AutoNavi will soon encounter. With mobile coverage spreading into many rural areas, many smartphones and tablets are now able to deliver the same navigation quality and features that Garmin's and AutoNavi's products bring to the table. Understandably, China's wireless infrastructure isn't as developed as what we have here in the U.S., so the lifespan of AutoNavi's products will be extended compared to Garmin, which has been on a multiyear downswing. Ultimately, though, the same product replacement cycle is going to hit AutoNavi when China's wireless infrastructure improves, and will slowly erode its business.
Top 10 Performing Companies To Watch For 2014: Northeast Community Bancorp Inc.(NECB)
Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various banking and financial products and services to consumers and businesses. It offers interest bearing demand accounts, such as negotiable order of withdrawal and money market accounts; savings accounts; non-interest bearing demand accounts, including checking accounts; and certificates of deposit. The company?s loan portfolio comprises multi-family and mixed-use real estate loans, non-residential real estate loans, equity lines of credit on real estate loans, commercial loans, construction loans, and consumer loans. In addition, it provides investment advisory and financial planning services. As of July 11, 2011, the company operated four full-service offices in New York; two full-service branches in Danvers and Plymouth, Massachusetts; and a loan production office in Danvers, Massachusetts. It serves customers in New York, Massachusetts, New Jersey, Connecti cut, and Pennsylvania. The company is headquartered in White Plains, New York.
Top 10 Performing Companies To Watch For 2014: NMDC Ltd (NMDC.NS)
NMDC Limited (NMDC) is an India-based iron ore producer and exporter. The Company operates in two business segments: iron ore and other minerals and services. The Company is engaged in the exploration of a range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. As of March 31, 2012, it produced about 30 million tons of iron ore from three fully mechanized mines, which include Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State). As of March 31, 2012, NMDC supplied 269.16 lakh tons of iron ore to domestic industries and had exported 3.85 lakh tons of iron ore. Its sponge Iron production was at 37,260 tons and its diamond production was 18043.44 carats during the year fiscal ended March 31,2012. On December 12, 2011, the Company's wholly owned subsidiary NMDC Power Ltd was incorporated.
Top 10 Performing Companies To Watch For 2014: Carpathian Gold In Com Npv(CPN.TO)
Carpathian Gold Inc., together with its subsidiaries, engages in the exploration and development of mineral properties properties. It holds 100% interests in the Rovina Valley, a gold-copper project, which covers an area of approximately 93.5 square kilometers and is located in central Romania; and the Riacho dos Machados gold project that comprises approximately 17 exploration licenses and 1 mining concession with a total area of approximately 28,151 hectares in Brazil. The company is headquartered in Toronto, Canada.
Top 10 Performing Companies To Watch For 2014: Engineer Inform(ENG.MI)
Engineering Ingegneria Informatica SpA, together with its subsidiaries, provides various information technology services in Italy and internationally. It offers system integration and consultancy, software solutions, and business process and information technology outsourcing services. The company provides its solutions to the public administration, finance, industry and services, telecommunications, utilities, healthcare, transport, energy, and media sectors. Engineering Ingegneria Informatica SpA was founded in 1980 and is based in Rome, Italy.
Top 10 Performing Companies To Watch For 2014: First Advantage Bancorp(FABK)
First Advantage Bancorp operates as the holding company for First Federal Savings Bank that provides various financial services to individuals and businesses in Tennessee. The company offers various deposit products comprising non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; regular savings accounts; and certificates of deposit. Its loan portfolio include real estate mortgage loans, including one-to-four family residential loans and nonresidential real estate loans; construction loans for one-to-four family homes, commercial, multi-family, and other nonresidential purposes; land loans for developing vacant land; consumer loans consisting primarily of home equity loans; and commercial business loans secured by equipment, inventory, or accounts receivable to small businesses. As of June 10, 2010, the company operated five full-service offices in Montgomery County. First Advantage Banco rp was founded in 1953 and is headquartered in Clarksville, Tennessee.
No comments:
Post a Comment