Smart Guy, Expensive Stock
The Netflix CEO is very cleverly positioning his company to move into video-on-demand if and when it ever takes off.
Now, you gotta like this guy's story. Built this DVD-by-mail rental company from scratch. But it's even more impressive to see him taking the turn to the next business model in such a manner.
Problems are the stock's P/E ratio and the heavy heavy capital cost that the company has as an ongoing commitment. They have to buy more and more new DVDs every year.
