Tag Archives: nflx

I Am Not Sure I Want Amazon (AMZN) Stock To Split Though It Appears Predestined Already.

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by Anura Guruge


Related posts:amazonsubs
>> Amazon Hoverboards ….
>> Prime TV subscription prices.
>>
Amazon Prime is worth it.
>>
 “Downton Abbey”.
>>
 “Mr. Selfridge”.

++++ Search on ‘Amazon’ for other related posts >>>>


amznstocksplit

Click to access ‘MarketWatch.com’ original.


When Netflix (NFLX) and Apple (APPL) split.
Charts from Yahoo finance. Click to ENLARGE.

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aaplsplit


With over 30 years of investing behind me I am now savvy enough to know that stock splits — or even reverse stock splits — don’t change the essential economic or operational dynamics of the underlying company. Splits are essentially artificial and contrived mechanisms to rejig the price of  a stock into a more ‘acceptable’ trading range.

I, as a proud and v. happy Amazon shareholder, expect AMZN to be approaching $800 by March 2016 — and my very active, even frenzied, option trading on AMZN reflects that. SMILE.

And for the last few weeks I have realized, innately, that an AMZN stock split could be likely, as was the case with APPL and NFLX, when the price gets into the $700 range.

But a AMZN stock split does NOT fill me with joy. Yes, even a 3-for-1 split would ensure that I would be able to claim that I own thousands of AMZN shares — and yes, that would further increase my stock option trading options (if you know what I mean). SMILE.

But, after years of pondering, the split-issue I finally have a concrete answer as to why I do NOT like splits of EXPENSIVE stock — like AMZN.

It brings in the WRONG CLASS of investor!

Sorry. It is not a question of being snobbish, it is a matter of safeguarding one’s assets.

At $600 – $700 you can keep away the casual, uninformed (if not totally clueless) retail investor. And that means you don’t get silly gyrations.

At $70 everybody and their dog thinks that they can own 100 shares — and then we get into the knee-jerk, totally irrational trading.

IF you study the NFLX chart, carefully, you will see that the split didn’t do the serious, long-term investors, such as I, any favors — though it made option trading more exciting.

I am fairly resigned to the fact that AMZN will most likely split in 2016. Yes, I will play options like crazy around the split since there will always be the totally meaningless SPIKE in price ahead of and just after the split. Well, you can’t win them all.


Not Just Netflix, All Of Us Will Be Impacted By Credit Card Insertion — Adding 30(+) Sec. Per Transaction.

creditcardemvAnura Guruge December 2014 thumbnail
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by Anura Guruge


Related posts:
>>
Credit card chip enforcement (EMV).

++++ Search on ‘credit card’ for other posts >>>>


netflixchipa

Click to ENLARGE and read here. Here is the link to the original: http://goo.gl/jaPxXs


Now that credit card chip enforcement (EMV) — i.e., insert vs. swipe — is in use have you noticed that it is taking 30 to 40 seconds LONGER for each transaction to be authorized. At least that has been my experience at Walmart — one of the FEW retailers, around here, that have moved to ‘insert’. Maybe that is just teething troubles during this first month. But then again it could be that the additional processing, which why we have a chip on the card in the first place, will always take longer — though possibly, with luck, not 30 to 40 seconds longer.

Unless we are travelling I don’t do too many credit card transactions a day (compared to others that work in a city or go shopping at Malls on a regular basis). But let’s say we, on average, do 4 credit card transactions a day. The extra 30 seconds would then translate to 2 minutes a day of WASTED time where we are hanging around, in front of a credit card machine, waiting to complete our transactions. That is a pretty amount of time — in my book. But let’s work this out. 2 minutes a day is 14 minutes a week. Now you have to admit that that is starting to get your attention.

1 WHOLE HOUR A Month!

1 whole hour.

That is 1/2 a Day each year.

A full day every 2 years.

Get the drift. This is NOT good. As some of you know I have a phobia about wasted time. Time is my greatest and most valuable possession. I really resent my time being wasted.

So a BIG heads up.

Check this INFOGRAPHIC about how much time we already spend inline — just on vacation. Credit card insertion will ADD to that!

Click to ENLARGE and read here.
This is the link for the original from the U.K. “Daily Mail”.

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Netflix balming credit card insertions for their DROP in U.S. revenues AMUSED ME — and I am a NFLX shareholder (and I own more than a couple).

Read between the lines.

This is what I think they are saying. There was a LOT of fraudulent credit card transactions on Netflix!

The chip-based cards are weeding out some of this FRAUD. That I think is the real cause.