Don't Resist the Wave

Netflix has been the best performing stock in our January 6, 2012 portfolio, when we "purchased" it for $86.29 per share. After reaching an intra-day high of $130.60 on February 6th and subsequently trading in the high-$120's, NFLX was hit by a selling wave yesterday when Comcast announced it was offering a streaming-video service.

I still think Netflix has the best product and will maintain its lead in streaming video. But Amazon is already a competitor, and there are rumors that satellite provider DirecTV will enter the market. It's best not to resist the wave. We'll sell Netflix from our portfolio at today's closing price and look to buy back in when the competitive landscape is clearer.

As of this writing NFLX is still 27% higher than when we bought it in January.