I.G.L

The Dow Jones has made an impressive run but it leaves a lot to be desired. The constant pullbacks have left many, including myself, thinking, “What’s stopping this growth?” As volatile as the markets are right now, it’s completely understandable but wouldn’t you like to see 13,500 or maybe a glorious 14,000? I know I would. Nevertheless, many stocks are still cheap; for the most part. The best strategy would be to add the most promising equities to your portfolio now before the real growth creeps in and you miss out. Getting in early is the name of the game.

Personally, this past week has been crazy. I had to close a couple of my positions to cut my losses but, hey, there’s always tomorrow! As an investment blogger, I know I should be highlighting a couple of companies that I’ve been watching but all of that is about to come VERY SOON. I have to get back into the mode of things, ya know? So, as I was saying in the previous paragraph, how about the Dow this past week? Yes, the big 30 has entered the 1-3 territory. Feels like just yesterday I was dreading the Dow pushing downward towards 10,600 as the economic outlook consumed the market. 

Oh well. The past is the past but recently, I had to respond to a couple of bearish comments on Twitter in regards to the DOW’s new high. Some were saying that it doesn’t matter, a tremendous pullback is imminent, and we’ll soon be struggling to reach these current market levels once again. Ironically, these guys were bragging about the stocks they were shorting at the time. Good luck to them, by the way. Moving on. 

Well, the DOW’s 13,000 high does indeed matter although the S&P500 does give you a broader look into the economy and the businesses that thrive in it. With that said, congratulations to the S&P500 as well. They reached a record high today that hasn’t been seen since May 2008. The Dow’s recent success is something to be proud of but until we can escape the grasp of declining markets and pullbacks, we cannot pop bottles just yet. However, the markets are looking good and 2012 will be the year that we get back on our feet. Thanks, Clint Eastwood. 

The indexes don’t lie because the investors don’t either. It is only natural that trades are executed upon the release of good news and decent reports on companies and sectors. With the DOW breaking past the 13,000 and the S&P reaching 1,367, I say things are about to look up and if these rallies continue, we’ll be running with Bulls. Great opportunities are ahead for investors of all backgrounds; professionals, adept, and even rookies.

Investors, Traders, Speculators, Business-Savvy individuals, and plain ol’ blog surfers, I bid you good day. Happy Monday! As you may or may not know, I blog about investments, stocks, and the markets. You may love it, you may hate it, or maybe you’re just not into it. No problem. That’s what I’m here for: to interest you in the topic and show you that there is a ton of money to be made; even with a small investment. Why buy the new Playstation Vita when you can capitalize off of it’s potential impact on Sony’s earnings? That is, if the Playstation Vita sells well in the current gaming market. It definitely won’t do well if I’m telling you not to buy it. Contradiction at its best, but you’ll come to understand it very soon ;-). In all seriousness, with many of the investing strategies that will be shared on this blog, you can make enough money to buy a large quantity of whatever it is you want!

I feel as though I’m inclined to do this blog and to tell you about what’s going on out there in the micro and macro business environment so that you, the current or future investor, can get a better understanding of how to play this game called the Stock Market. It’s a high stake game that I’ve been into for the past six years now (note: I am turning 20YO in May) and I have experienced the highs and lows, the trial and error of investing, and as an adept [not yet professional], I am still learning. You invest, you grow, and you learn. That’s the beauty of it all. 

With that said, I look forward to expressing the many ideas I have for this blog and I look forward to posting all of the business-related content. My ultimate goal is to educate those who are interested. If you would like to see more of my ideas outside of blog posts, follow my Twitter: @ArlandusG (c’mon, you like money don’t ya?).

Note: Gamers and tech-junkies, buy that Playstation Vita. Sony may have outdone themselves with this one. 

- Arlandus Gibbs, IGL

In the middle of market…

I’m sure you love your video streaming service, don’t you? I’m actually watching a movie right now called Take Me Home Tonight starring Topher Grace. It’s alright. It’s not really catching me like I thought it would but that’s not what I’m here to talk about. Netflix has been one of those companies that you just can’t help but to notice especially if you’ve been into the business articles as of late.  

Without any further blog-filler, let’s get right down to the point. Netflix has had some ups and downs in the market and in its operations. The video streaming company actually covered some ground with large gains between 2007 and 2011, during the midst of our country’s economic downturn. I guess the jobless, paranoid, and hopeless found comfort in chocolate and movies. Before then, Netflix’s stock traded between the $20-$40 range. Shareholders were able to reel in decent returns with that small range, but whatever dime was made in that market was nothing compared to the imminent breakout. Expansion. Eventually, too much need for expansion. Apparently, Reed didn’t know when to stop. 

Before the mass popularity, Netflix was no stranger to cosmetic changes to its business model and the customer experience. Recently, the announcement of a separate DVD rental business called Qwikster didn’t sit too well. I don’t know if the average Netflix customer hates change or what, but it was reported that many of them left the service once the news got out. After this, share price declined but it was nothing that shareholders would break a sweat over. Yet. Netflix successfully scrapped the entire Qwikster idea, attempting to bring a peace of mind back to their loyal customers; at least for those remaining. Once the Q3 earnings report was released, it revealed a collective loss of 800,000 customers. Ouch. 

There was a large sell off of holdings in Netflix which resulted in a 78.62% loss if you were on that ride going down. Now if you want to talk about dramatic, that was it. The stock price went from a beautiful high of $298.73 to a horrible low $63.86 and in four months. That was enough time to get out but in our modern market, you never know. A price drop like this definitely puts a company in a dangerous position. Netflix’s future was at stake as well as Reed Hastings’ sanity. The investing community had definitely lost faith in the streaming service, but if Netflix is sustainable as a business, it will surely make a comeback within the next few quarters. Why so harsh? Why sell because of such a small problem? Kind of. Because! CUSTOMERS are the BUSINESS! No customers = no business. Add that to the mix of shaky investors, then you got yourself a decline in share price. In hindsight, Netflix’s reign seems to be over. BUT, if you know Netflix like I know Netflix, then you should know that they are definitely sustainable no matter what they say. The odds that Netflix will fail anytime soon is, *sips wine*, crazy …preposterous!

With 61% ownership in U.S. digital movie market share, do you see them going under anytime soon? Their dominant presence isn’t going to be affected by short-term losses and that’s with any business. Sustainability isn’t defined by a few short comings. This is miniscule compared to real business catastrophes. The situation is pretty bad in terms of Netflix’s business but comparing it to other situation’s, finding a healthy company in them is certain. Take the banking industry for instance. We’re looking at a system that has been under heavy scrutiny for years, numerous failures, gargantuan losses, endless job cuts and, of course, our politicians who want to turn Wall St. into a prison. Taking all of these factors into consideration, the banking industry isn’t exactly a smart investment unless the the banks can get back to profitability and away from job-destroying regulation. But, I digress… The video streaming industry is all growth and it would be beneficial for investors to get in at the right time and with the right company. Netflix’s stock may not get back to the $300 per share area so soon, but the $120-$150 range is feasible in the near future as long as investors regain confidence. $63.86 was definitely a buy target. Proof: Netflix is trading at $94.89. If you bought, that would have been a 47% return. $1000 would be $1470. At this rate, the market demand for Netlfix will be hot in no time. Simple, right? Right?  

Not so simple. Netflix seems to be breaking out for now, but there is one factor that is stopping any current shareholder from gaining those returns similar to that of the company’s 2007-2011 stock performance. We still have to see the Q4 earnings. The business saw decent revenue in Q3, but they also lost customers. Who’s to say that the customer dissatisfaction ended after September? Revenue may be down, earnings may slump, costs may be up, and more people could have possibly ditched the service. Now, let’s drop all of the business lingo. Let’s look at this from a customer’s point of view so we can understand this company’s biggest problem. The average, ordinary guy or girl may not be reading the Wall Street Journal or New York Times’ Business Day. They don’t care about revenue or profits. They don’t care about another 799,999 people leaving the service. They probably don’t even care about the separation of DVD and streaming. They just want to watch all 5 Seasons of Gossip Girls! Or the only 2 seasons of Dirty, Sexy, Money (love that show). The only thing that would make them leave Netflix is the consumer’s only concern: prices. The price of Netflix’s service has increased and, if you ask me, it’s probably the main cause of the customer loss. Catering to the customer is the only way for them to not only sustain, but to succeed in the long-run. There is a market for streaming and it’s bullish. Watch.

In conclusion, If their earnings report on January 25th are anything less than what is expected of them, we could eventually see Netflix back at $60. If Q4’s results are above average then, shareholders, you’re in for great gains especially if you bought in at rock bottom. Triple digit share price, hello. Play the earnings. Invest. Grow. Learn.

Long time no see, Tumblr. I’ve been blogging on here for about a year now though I’ve been on and off. It’s 2012 and it’s time for me to be a little more organized with my work and my hobbies. Before I dive back into the world of Tumblr, I’ve been thinking; maybe I should reinvent my blog. After following blogs with horror-film blogs, music blogs, hippie blogs, and even the cliché fashion blogs, it inspired me to start my own subject-focused blog. My next dilemma: what exactly should I talk about? What am I into? Well, that’s a no-brainer. For the last four years, I’ve been in a beautiful yet insane affair with business and financial markets.

Besides being a Business-Major with a concentration in Finance, I’ve always loved business, banking, and how money flows through the national and global economy. Without it, we would definitely be behind the curve as a society. So in a way, money does make the world go ‘round! It didn’t take much for me to learn the in’s and out’s of investing and watching financial markets. I’ve given golden advice to fellow investors that has proven to be profitable through strategic trading. Well, not that strategic (lol). Buying low and selling high is pretty cut and dry but complexity varies, depending on the stock, of course. 

Anyway, I’ve decided to dedicate this blog to business and finance. Here, you’ll find business news, company profiles, my sentiment on trades, definitions, and even the developments, adventures, and happenings in my life. After all, I am a business major that has to go through internships and, eventually, a full-time job in my field. Those will be the main features of this blog and I’m sure I’ll think of more interesting categories once I get back into the spirit of blogging. Note: excuse the blog of anything that may not be business related. I have a knack for posts about film, fashion, and/or video games. I’ll do my to keep it in the business subject, though. To my current followers, I apologize if this isn’t your kind of thing. I’m sorry if I can’t give you pictures of shoes, drugs, and other content that hipsters like. (lol)

Welcome to IGL. Invest. Grow. Learn.

It’s been a long and hard week for me. I went to my classes worrying about grades and thinking about the next time I would have to take an incredibly difficult quiz. Thankfully, I made it to the weekend. Not only did I play Modern Warfare, Black Ops, Gears and Halo for hours, I’m planning a special day for a special someone. 11/19/11 marks the fourth year that I’ve been with my fiancée. I’ve planned the entire day out. I got the gift, the locations and the appropriate attire; all equipped with the romantics. Everything about tomorrow shall be just as memorable as every anniversary we’ve had before. I love her with all that I am and without her, I would not be the man that I am today. She gives me the strength to push myself to be the best I can be and more. She makes it possible for me to smile when the world punishes me. She is everything. I want to thank her for being my best friend first and foremost. I knew you were an angel since 1999 and you proved it in 2006. After 13 wonderful years of knowing you, I couldn’t be more happier with the woman you’ve become. At this point, nothing matters. I have to work on a business model for my start-up; doesn’t matter. I have three unanalyzed stocks on my plate; doesn’t matter. I have to study for an art quiz and a quiz in statistics; doesn’t matter. I still haven’t called your dad about that thing lol; that also doesn’t matter. What matters is us; only us. I love you baby.

Follow my love at: http://sundaysprinkles.com

FNA/ANFM