Stock of the Day: Netflix

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Netflix's monthly viewing exceeded 1 billion hours for the first time ever in June, according to a Facebook post by CEO Reed Hastings. That means U.S. subscribers watched around 80 minutes of Netflix per day last month. Following a disastrous attempt to split the company in two last year, Netflix appears to be making great progress. These recent numbers will put Netflix in a great negotiating position for content. And if more content can bring in even more viewers, then those incremental viewers could prove to be quite valuable. John and David think it's time to give Netflix a very close look.

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David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Walt Disney. The Motley Fool owns shares of Walt Disney, Facebook, and Netflix. Motley Fool newsletter services recommend Netflix and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 06, 2012, at 11:37 PM, MrSinnister wrote:

    When will Discovery Labs (DSCO) finally get some love ? I mean they have 2 FDA approved products that go into distribution in the 4Q, with the FDA approval coming in March. They only have 43 million outstanding shares, with a current market cap of 125M which nearly multiplies with every 10 cent increase. They are going to distribute a drug for Respiratory Distress Syndrome for infants in the US and European markets, and they have TREMENDOUS upside, already up 60 percent on the year. Add to that two more drugs awaiting approval, Aeroserf, that is in a collaboration with Batelle to get streamlined and fine-tuned and Surfaxin LS, a liquid version of their already FDA-approved drug Surfaxin. How this stock stays in the 2 range is amazingly shortsighted.

    Value of Surf LS + Afectair: 275million

    Shares O/S: 43mil

    Tell me why we can't see $40+/share with DSCO. Note that my sell target is below this, but I expect the stock to soar once it gains momentum. Imagine that liquid surfaxin penetrates the market quickly and gets great reviews by practicing docs (which it should). Surf LS will be even better. And Aerosurf even better after that.

    Facts:

    1. one approved device

    2. one approved drug

    3. $40 million in cash

    4. no debts

    5. no preferred stocks

    6. no impending warrants (outside of the 5yr 5M at 2.80)

    8. exclusive rights

    9. excellent pipeline

    10. Newly partnered (Batelle for R&D)

    11. MAA approval soon

    12. New device new drug launch soon

    13. Mkt Cap 128 million ???

    At 3 times sales, this is already $400 million firm, and that is $10 PPS. DSCO === Hidden Gem.

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