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Netflix CFO Dumps 100,000 Shares Over $200, Has Just 51,563 Shares Left

Tyler Durden's picture





 

Was this the peak of the world's most overpriced stock Netflix? A new Form 4 filing indicates that the first defection in realization of a sinking ship may have occurred. On November 4, Netflix Chief Financial Officer Barry McCarthy sold 100,000 share equivalents, with 91,181 shares sold between $200.36 and $201.11 and the balance from option exercise. The sale has left Barry with just 51,563 shares of NFLX stock. Altogether the proceeds from the transaction are listed as just over $17 million. This also means that in next week's massive insider selling disclosure which we will present on Monday, Netflix will feature prominently in the top 10 of the world's artificially levitating companies. If the CFO believes the time to take profit is in, what does it mean for the millions of other hot potato holders? At last check Netflix was down almost $20 from the all time high hit earlier this week. It has far more to go, especially if as we expect, the company will announce a follow on equity offering shortly.

Form 4 filing below:

 

 


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Thu, 12/02/2010 - 13:04 | Link to Comment Dr. No
Dr. No's picture

They got to sell.  Tax breaks will not be extended.  Cant blame them.

Thu, 12/02/2010 - 13:06 | Link to Comment crosey
crosey's picture

Maybe.  But it does make for a nice holiday cash position.

I think he knows how overvalued NFLX is.

Thu, 12/02/2010 - 13:14 | Link to Comment Dr. No
Dr. No's picture

Absolutely.  No one ever went broke taking profits.

Thu, 12/02/2010 - 13:17 | Link to Comment patience...
patience...'s picture

I saw grandma on the news last night saying she had to eat cat food because her unemployment had run out. The reds won't extend benefits and the blues won'tgive the deserving rich a tax break.

Doubtful, time for a compromise.

Thu, 12/02/2010 - 13:27 | Link to Comment Ragnarok
Ragnarok's picture

I saw grandma on the news last night saying she had to eat cat food because her unemployment had run out.

 

What's a grandma doing on unemployment? What about her lifelong savings? What about her SS? What about her family?  Sounds like Grandma liked to party and made a lot of enemies.

 

You consider an S corporation holder who makes $250,000 for a family of 4 rich?  I say make $2MM and less permanent and everything else expire.

Thu, 12/02/2010 - 13:24 | Link to Comment SilverRhino
SilverRhino's picture

>> I saw grandma on the news last night saying she had to eat cat food

Grandma is an idiot then.  Pinto beans, onions and flour are both CHEAPER than cat food.

Thu, 12/02/2010 - 13:32 | Link to Comment Dr. No
Dr. No's picture

But if Grandma is like other crazy pet owners, she doesnt want her cat eating beans.  She must choose between grandma food and cat food, so she keeps the cat happy.

Thu, 12/02/2010 - 14:25 | Link to Comment crosey
crosey's picture

Blue Buffalo....mmmmmmmmmmmm....now that's tasty.  Even comes in duck!

Thu, 12/02/2010 - 13:26 | Link to Comment Dr. No
Dr. No's picture

You wont see a compromise.  The Repubs are positioining to get the Dems in a corner.  Time is on their side.  The Repubs want to generate a headline the Dems failed to compromise and get a tax cut for the middle class.  Once the new class starts after the new year, they will pass one retro active in order to "save the day".  None of them are interested in helping grandma.  They want the white house and every move, fillibuster, and vote they make is for that end.

Thu, 12/02/2010 - 14:07 | Link to Comment Joe Davola
Joe Davola's picture

And vice versa.

Thu, 12/02/2010 - 14:33 | Link to Comment Dr. No
Dr. No's picture

100% agree.  by "None of them" I meant DEMs and Repubs.  The guy who junked me must have mis-understood. or is an idealist.

Thu, 12/02/2010 - 16:14 | Link to Comment Joe Davola
Joe Davola's picture

Unfortunately, as you pointed out, the parties are more interested in painting the opposition into the corner than effectively dealing with the problems.  The whole debt ceiling/budget delay tango that will play out over the next few months is a perfect example of placing the political game ahead of serving the people.

 

Also, I didn't junk you, but if you'd like...[/grin]

Thu, 12/02/2010 - 14:09 | Link to Comment Joe Davola
Joe Davola's picture

The nearby grocery store has a cooler stocked with upscale cat food that looks better than the fare I consume most often.  Probably higher nutritional value to boot.

Thu, 12/02/2010 - 13:05 | Link to Comment jaap
Thu, 12/02/2010 - 13:21 | Link to Comment lynnybee
lynnybee's picture

...thank you .... a lot gets by me now that i cancelled my lying cable news channels !  it's TOTAL INTERNET now, ZEROHEDGE being the top news & editorial content for me !!   I'm loving this BERNIE SANDERS speech & am forwarding to all my friends who have a few dollars left in their wallets !! .......

Thu, 12/02/2010 - 13:25 | Link to Comment Milton Waddams
Milton Waddams's picture

Bear witness as the jet-setting oligarchy pit the ordinary cats against one another. If only the cats could set aside the intentionally divisional wedge issues and form a united front against their oppressive agitators then, and only then, may they share in a feast for a king. Alas, it is not to be...

http://www.youtube.com/watch?v=cbBlYfTbA44&feature=player_embedded

Thu, 12/02/2010 - 13:06 | Link to Comment Uncle Remus
Uncle Remus's picture

Score!

Thu, 12/02/2010 - 13:06 | Link to Comment h0twire
h0twire's picture

http://www.gurufocus.com/news.php?id=115719

 

here's some of the other recent insider sales of netflix stock.

Thu, 12/02/2010 - 13:08 | Link to Comment patience...
patience...'s picture

200mil+, just in time for christmas. With Comcast trying to spank them

it might not be a bad move.

Thu, 12/02/2010 - 13:09 | Link to Comment idea_hamster
idea_hamster's picture

See - someone listens to Cramer.

Thu, 12/02/2010 - 13:12 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Sold to Harry

Thu, 12/02/2010 - 13:14 | Link to Comment karzai_luver
karzai_luver's picture

so many short plays so little time.............:)

I heard everyone is buying Harry told me HE is going gangbusters.

Thu, 12/02/2010 - 13:13 | Link to Comment JuicyTheAnimal
JuicyTheAnimal's picture

I don't mess with stocks too much after being burned short enough times in the recent past but when I saw it turn south yesterday I thought "oh this is a no brainer".  So far so good. 

Thu, 12/02/2010 - 13:15 | Link to Comment karzai_luver
karzai_luver's picture

Can you eat a Netflix, the choice is coming and food will win.

Thu, 12/02/2010 - 13:16 | Link to Comment lunaticfringe
lunaticfringe's picture

Tax breaks and just a little problem with Comcast taking a big ol bite out of their ass in the streaming video platform and servers. Jumping ship before telling any of the other rats, we have a serious structural problem with our plans.

Thu, 12/02/2010 - 17:36 | Link to Comment Calmyourself
Calmyourself's picture

Bingo,  Comcast let them get to where they are and is now reminding Netflix that they (Comcast) own the last mile to the consumer.  Biggest shorters of netflix: Comcast executive suite.

Thu, 12/02/2010 - 13:31 | Link to Comment tmftdoyle
tmftdoyle's picture

to start, i have been destroyed shorting this stock. But, that is beside the point. This company is tapped with respect to any further material content purchases (i.e. the starz renewal) absent a new stock deal. Stock buybacks have been halted (within a quarter of announcing a new authorization) and market spend is being reigned in this quarter. If one examines their statement of cash flows, absent stretching payables, the company is cash flow negative for the last twelve months. When the machines and  cnbc mad/fast money pumpers learn how to read financial statements look out below.

Thu, 12/02/2010 - 13:40 | Link to Comment tmftdoyle
tmftdoyle's picture

just looked through the filing. one thing i always take note of is the expiration date on employee option exexercise. if options terminate within the current year, then no big deal. but, as is the case here, when the exercised options expire 5-8 years then the seller is making a very large statement as to future prospects, as is the case here. Hasn't Mr. McCarthey read all the glowing research and seen the power of the discounted cash flow models pumped out by street research. How could anyone give up all that upside?

Thu, 12/02/2010 - 14:00 | Link to Comment Battleaxe
Battleaxe's picture

Internet service providers are starting to charge for total bytes transferred which will KILL Netflix since the movie files sizes are HUGE. Netflix has been blamed for bogging down the internet recently. Netflix just announced that they had planned to go to totally streaming content and phase out DVDs, but they may not happen now????

This may save BluRay for a while?

 

Many of the bigger ISPs are cable companies whose on-demand movie services are in competition with Netflix.

Thu, 12/02/2010 - 13:54 | Link to Comment apberusdisvet
apberusdisvet's picture

 

 

A CNBC shill just suggested that now was a good opportunity to buy Netshits; no mention of the big insider dump.

Thu, 12/02/2010 - 14:03 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Selling high, how dare he.

Thu, 12/02/2010 - 14:04 | Link to Comment djsmps
djsmps's picture

It looks like he sold another 100K a few days ago:

Nov 30, 2010 MCCARTHY BARRYOfficer 91,181 Direct Option Exercise at $27.24 - $30.89 per share. 2,650,0002 Nov 30, 2010 MCCARTHY BARRYOfficer 91,181 Direct Automatic Sale at $200.36 - $201.11 per share. 18,303,0002 Nov 29, 2010 MCCARTHY BARRYOfficer 8,819 Direct Option Exercise at $27.11 - $27.24 per share. 240,0002 Nov 29, 2010 MCCARTHY BARRYOfficer 8,819 Direct Automatic Sale at $200 per share. 1,763,800
Thu, 12/02/2010 - 14:34 | Link to Comment virgilcaine
virgilcaine's picture

Better late than never..all that's left are  B Sack and Hft's, and Robo, now dole out the Bankster Xmas bonus and its a wrap 

Thu, 12/02/2010 - 14:13 | Link to Comment Oquities
Oquities's picture

6 month netflix put options 90 points or so out-of-the-mioney for 2.40 bid?

Thu, 12/02/2010 - 14:13 | Link to Comment thechainrule
thechainrule's picture

Is CMG next?

Thu, 12/02/2010 - 14:16 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Technically speaking, this is known as "git while the gittin's good!"

Thu, 12/02/2010 - 14:20 | Link to Comment brusty4
brusty4's picture

Am I missing something? Why does it say he sold on Nov 4th? It looks like the earliest transaction is Nov 29th.

Just looking at all insider transactions for them, it's been a long time since they have had any buying. That is a giant red flag for me.

I also see they have a "Chief Talent Officer". Never heard of that title before.

Thu, 12/02/2010 - 17:13 | Link to Comment djsmps
djsmps's picture

This is a Nov.4-5 sale that I saw (in addition to the Nov. 29 sale):

Nov 4, 2010 MCCARTHY BARRYOfficer 118,848 Direct Option Exercise at $1.50 - $27.11 per share. N/A Nov 4, 2010 MCCARTHY BARRYOfficer 118,848 Direct Automatic Sale at $167.51 - $173.2 per share. 20,246,0002
Thu, 12/02/2010 - 15:23 | Link to Comment downrodeo
downrodeo's picture

despite all of this, I still hate blockbuster more

Thu, 12/02/2010 - 15:31 | Link to Comment robertocarlos
robertocarlos's picture

He's not dumping! He is Xmas shopping, saving American retail and supporting the tax man.

Thu, 12/02/2010 - 18:42 | Link to Comment innertrader
innertrader's picture

.........and TAXES may never be cheaper!!!

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