Whitney Tilson Stays Long Netflix (NFLX), Short Green Mountain (GMCR)
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In the monthly "Value Investing Letter" over the weekend, T2 Partners' Whitney Tilson laid out a comprehensive case as to why he's long Netflix (Nasdaq: NFLX) and short shares of Green Mountain (Nasdaq: GMCR).
T2 and Tilson were buying Netflix shares hand-over-fist on October 25th when the stock was down more than 30 percent following earnings. Despite some expected headwinds over the next few quarters, Tilson believes Netflix is an "excellent company." He argues the market has recently overreacted to the number of concerning developments which have popped up over the last few months. Tilson also likes the fact that Netflix would be a "bite-sized" deal for a number of the big players like Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Disney (NYSE: DIS) or Google (Nasdaq: GOOG).
Tilson is convicted in his call against Green Mountain, saying the company is still T2 Partners' largest short position despite a more than 50 percent decline in shares since the beginning of October. The fund manager feels the SEC will eventually find "various accounting shenanigans" at Green Mountain. Tilson suggests more shoes will drop at Green Mountain.
While Netflix shares are up about 0.6 percent in pre-market action Monday, shares of Green Mountain are down 1.6 percent to $43.02.
T2 and Tilson were buying Netflix shares hand-over-fist on October 25th when the stock was down more than 30 percent following earnings. Despite some expected headwinds over the next few quarters, Tilson believes Netflix is an "excellent company." He argues the market has recently overreacted to the number of concerning developments which have popped up over the last few months. Tilson also likes the fact that Netflix would be a "bite-sized" deal for a number of the big players like Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Disney (NYSE: DIS) or Google (Nasdaq: GOOG).
Tilson is convicted in his call against Green Mountain, saying the company is still T2 Partners' largest short position despite a more than 50 percent decline in shares since the beginning of October. The fund manager feels the SEC will eventually find "various accounting shenanigans" at Green Mountain. Tilson suggests more shoes will drop at Green Mountain.
While Netflix shares are up about 0.6 percent in pre-market action Monday, shares of Green Mountain are down 1.6 percent to $43.02.
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