NEW YORK - According to "Mad Money" Host Jim Cramer said "using the right metrics, Netflix is still a cheap stock." Cramer did this in a segment where he compared U.S. Steel to Netflix while purporting that they could not be compared but at the same time Cramer somehow came out with the overwhelming winner in Netflix. Allan Edwards the CEO of The Markets Are Open said "that lots of stock remain very cheap if you alter your analysis to find why they are cheap."
Netflix faces competition from free downloads, PVR, Cable Boxes, Satellite, DVD's HULU and video rental stores. Edwards finished if Netflix was a music website like Napster investors would value it extremely low since people know a lot of music is downloaded illegally. At the same investors have not factored in the growing internet DVD library.
To see the full Netflix report click here.
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