Is It Too Late To Buy Netflix?

By: Melvin Pasternak of Street Authority

While old media stocks like Viacom (Nasdaq: VIAB), Walt Disney (NYSE: DIS) and 21st Century Fox (Nasdaq: FOXA) were hit with bad news and huge losses last week, Netflix (Nasdaq: NFLX) scored three straight record closing highs before succumbing to profit-taking on Friday.

Shares have been on a tear, more than doubling in the past four months. I'm sure plenty of investors are kicking themselves for missing the boat, but it's not too late. When a stock makes a new all-time high, especially a high-momentum growth stock like NFLX, it tends to keep moving higher. And Friday's sell-off provides an attractive short-term entry level.

Netflix is being driven by strong growth domestically and abroad. On July 15, the video streaming giant reported better-than-expected second-quarter earnings of $0.06 per share on revenues of $1.64 billion. Continue reading "Is It Too Late To Buy Netflix?"

Short McDonald's Now

By: Melvin Pasternak of Street Authority

I have to admit it: McDonald's (NYSE: MCD) is not one of my favorite fast-food restaurants.

As I age, I am increasingly concerned about the effect diet has my health, so I try to eat lots of fruits and vegetables and avoid foods high in salt and fat. True, you can find some relatively healthy options at McDonalds if you choose wisely. However, if you indulge regularly in high-fat, sodium-rich hamburgers and fries, it can lead to an increased risk for Type 2 diabetes and heart disease, among other things.

My beef with the chain goes beyond its food, though. The company also uses way too much packaging from my point of view -- a sin it shares with many of its fast-food brethren. For anyone with a sensitive environmental conscience, what gets dumped into the trash can at the end of a McDonald's meal causes added distress.

My complaint with McDonald's stock goes beyond my dislike for the restaurant. With the broader market reeling from the effects of the Greek debt crisis and the massive sell-off in Chinese stocks, I believe McDonald's may be on the brink of a major correction. As a result, it is setting itself up as a highly profitable short trade. Continue reading "Short McDonald's Now"