Dark Side of the Street (Edition #15)
Netflix Thoughts?, Top Movers, Top Micro Purchases, and More!
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“To make money in the markets, you have to think independently and be humble.”
- Ray Dalio
Thought of the Week
So how about Netflix stock huh? (I hear everyone’s groans… “omg one more person that feels the need to give their opinion on Netflix”).
I’ll be honest, I was thinking about discussing $NFLX this week but then I thought… this is the Dark Side of the Street, how can I actually justify discussing the stock that’s been in every headline this week, in a place where people come to find the least talked about stocks on the market! I mean, who cares if Bill Ackman lost $400 million and everyone is just waking up to the fact that growth stocks get crushed when they stop growing.
The interesting part of Netflix’s massive stock drop is my reaction to it. As soon as I hear an amazing company like Netflix’s stock has tanked almost 70% since Nov. 2021, I start getting really interested. The stock has been steadily increasing for years and I’ve always thought who cares, I probably missed the boat and it’s now overvalued.
The simple fact is… I hate trendy things. I don’t follow trends and I don’t care what people think about me. But I love finding gems before everyone else. And that’s why I love the Dark Side of the Street, I’m almost always going to find a stock before someone else because I’m literally looking at companies that no one has ever heard of and no one else cares about.
Okay now that I’ve talked about Netflix without talking about Netflix, let’s go find some gems.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Game publisher Ubisoft draws buyout interest - report” - By Jason Aycock of Seeking Alpha
“Cathie Wood’s Flagship Fund Is Down 45% This Year. Money Is Still Flowing In.” - By Karen Langley of WSJ
“Ms. Wood and her fund shot to prominence in 2020, when its shares soared nearly 150% as the Federal Reserve slashed interest rates to near zero and investors loaded up on risk. The S&P 500, by comparison, rose 16% that year.
Since then, it has been tough going. While the S&P 500 gained 27% in 2021, ARKK shares slumped 24%, stung as rising government bond yields prompted a flight from high-growth stocks. The downdraft has continued this year as the fund sticks to its strategy of buying and holding companies it believes offer the greatest potential for innovation. Many of them haven’t yet achieved consistent profitability.”
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard (NASDAQ: ATVI) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~21%.
StarTek, Inc. (NYSE: SRT) - Risk Arbitrage/Going Private Transaction
The spread between the buyout price ($5.40/share) and SRT’s current trading price is now ~35%.
Zynga Inc. (NASDAQ: ZNGA) - Risk Arbitrage
The spread between the buyout price ($9.86/share) and ZNGA’s current trading price is now ~11%.
*See links for the situation summary from prior editions
After I wrote my thought of the week I quickly thought of this song, so here’s the song of the week!
See you next week!
- Dark Side of the Street