Netflix, inc. (NASDAQ: NFLX) has given its highly awaited earnings report.  the online and DVD rental giant reported earnings of $0.73 EPS and $876 million in sales.  Thomson Reuters had estimates of $0.55 EPS and $857.9 million in revenues, so the decline that was expected did not come as harshly as many feared.

Streaming membership grew by 220,000 to 21.67 million from 21.5 million in the third quarter due to better than expected subscriber growth in December with fewer streaming cancellations. 

The company is increasing its first quarter contribution target to 11% after exceeding its 8% target in the fourth quarter.  the company also expects to increase the domestic streaming contribution margin throughout they year and it sees expansion of about 100 basis ponts per quarter.

As far as guidance, Netflix sees paid subscriptions in the 21.5 to 22.3 million subscribers. It is also targeting a loss of -0.16 to -$0.49 EPS on sequentially flat revenues.

Unfortunately, the year over year content spending is increasing by more than double in the first quarter.  It sees content costs rising in each quarter sequentially but not by the same huge bump. the remaining Starz movie catalog will come off of the domestic service at the end of February.

Because of a short squeeze and because this was less-bad it has shares up 11% around $104.85 in the after-hours.  Our argument is less constructive for the bulls because we are still very concerned that Netflix will have a hard time transitioning its story from an earnings growth story to a story of EBITDA growth that is now going to lose money and have a change of content with higher content costs coming.

The 50-day moving average was $78.39 and the 200-day moving average was $177.76 going into the closing bell.  There were more than 9.1 million shares short at the last short interest date.  Stock options trading indicated a move of up to about $10.00 in either direction for after this news.

Morgellons and Morgellons Disease

by on January 26, 2012

Morgellons is a skin disorder that many people are not familiar with. this is mainly proven by the fact that a majority of patients that suffer from this condition, which is also known as Morgellons Disease, receive the wrong diagnosis from their doctors. Common diseases that are misdiagnosed include Lyme disease, chronic fatigue syndrome, delusional parasitosis and even attention-deficit disorder (ADD). because of this issue, patients tend to turn to the Internet to learn more about Morgellons. this has resulted in many patients self-diagnosing their own skin disorders.

It wasn’t until 2001 that Morgellons disease came about, thanks to a stay at home mother with an academic and professional background in Biology. when Mary Leitao’s young son developed symptoms of Morgellons, such as skin lesions with multicolored fibers, numerous doctors refused to believe that this particular case was unique or odd. this led Leitao to create her own foundation for the research of this skin condition and dub it Morgellons, after a similar case discovered by English doctor Sir Thomas Browne. while Browne’s cases also exhibited the multicolored fibers on and around the skin lesions of his child patients, it is generally believed that the two cases are not the same.

There is currently no specific treatment for Morgellons disease, nor do medical experts readily know what the cause is. this is the main reason why Leitao’s foundation as well as the Center for Disease Control has launched their own investigations into conducting research in order to create a list of specific symptoms to make Morgellons easier to diagnose. Additionally, more information may also shed light that could lead to an effective treatment for patients.

Morgellons and Morgellons Disease

Pro Football Talk reported earlier on Wednesday that the Indianapolis Colts had tabbed a new head coach to succeed Jim Caldwell. Jim Irsay will have to run through his Twitter comments to find a winner for those Super Bowl tickets he offered.

Chuck Pagano, defensive coordinator of the Ravens, moves into the top spot to usher in the new era of Colts football. he served as the team’s secondary coach before ascending to the coordinator role. Pagano’s hiring speaks to the rebuilding process underway in the Super Bowl host town and a shift in identity.

The Colts have a number of high-priced veterans on both sides of the ball set to hit free agency (Reggie Wayne, Pierre Garcon, Robert Mathis and offensive line mainstay Jeff Saturday among them). it is presumed, particularly given his recent comments, that there is no decision to be made concerning Peyton Manning in terms of his future in Indianapolis. Rather, it’s just a matter of timing and how much fanfare goes into the announcement of his departure.

I’ll have more on this shift and other league developments from the floor of the media center next week from Indianapolis.

Synaptics showed off how touch controls will change in the next year at the recent Consumer Electronics show. Synaptics has a big market share in touch application hardware and it showed off its latest products at the show.

In the picture at right, you can see that upcoming touchpads for laptops will be able to handle the simultaneous input from more than just two fingers. the image at the right shows how you can use five fingers on a touchpad at the same time. This enables apps like multi-finger painting or more complex gesture commands using your fingers. You can scroll with two fingers or flick an image from one part of the screen to another with four fingers.

With Ultrabooks, which are thin laptops akin to Apple’s MacBook Air, another wave of change is coming. With more than 70 models on the way, the Ultrabooks will use touch both in the touchpad for the cursor control as well as a touchscreen. the touchpads for the Ultrabooks could become much larger than is typical, particularly with Windows 8 coming out later in the year. You can use one or two fingers to move the Metro user interface (pictured left) with lots of block-oriented buttons you can click on.

Synaptics has technologies that it calls a TouchPad, or a touch-sensitive surface such as a laptop touchpad; a ClickPad, which can be used for scrolling and pointing just like a TouchPad but can also be used to replace physical buttons; a ClearPad, a touchscreen solution; and InterTouch, for multi-finger and multi-gesture support on touchpads, used in combination with TouchPads or ClickPads.

Right now, ClickPads are shipping in Ultrabooks such as the Lenovo U300s, HP Folio 13, and the Acer Aspire S3. the InterTouch uses a faster connection within the computer to transfer more data at the same time. That’s why it allows for multiple-finger touches at the same time. It’s very responsive. In the touch painting, you can see little halos on the screen so you can see where your fingers are.

With Microsoft’s Windows 8 operating system, Microsoft wants computer makers to use larger touchpads. Synaptics is recommending that computer makers use a large image-sensing ClickPad with a high-speed connection to get an optimal result. Synaptics is working as an engineering partner with Microsoft so that it can enable computer makers to design the bigger touchpads (at least 4.9-inch diagonal) into the limited space in the thinner laptops. the experience is intended to be the same as working with a smaller touchpad, so users don’t get confused when they move to Windows 8.

“it means the days of the little touchstick are long gone,” said Rick Bergman (pictured right), chief executive of Synaptics, in an interview. “We’re absolutely in a very cool space.”

Intel believes that Ultrabooks will have touchscreens, though some people believe that’s not going to work so well. Synaptics is covered on both options, as it has touchscreen and touchpad technologies, Bergman said. Definitely, though, some machines will have both. Convertible laptops, for instance, will be used with touchpads when they are in a regular laptop mode. but they can be used as touchscreens when you twist the screen around and use them as tablets.

Some of the desktop computers are also have built-in touchpads so that you don’t have to attach a mouse to the computer.

Touch controls are also spreading throughout the digital home. TVs, set-top boxes, and internet-enabled media centers or Blu-ray players will likely make navigation more complicated as they take on more functions. To deal with that, companies such as Panasonic are creating remote controls with built-in touch surfaces (pictured left). With button-based remotes, it’s harder to surf through a bunch of media selections. but as the second video below shows, it’s much easier to use a small touchpad embedded within a remote to move a cursor across a screen.

Philips has a dual remote where you can use buttons or a touchpad. it is shipping with Iomega TVs in Europe. Synaptics also has screens that can respond to both touch and pen input.

Here are two videos where Jacqui from Synaptics shows us the variety of touch-oriented technologies that the company is working on touch concepts for the coming year.

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Synaptics shows how touch controls will change in the next year

HONOLULU — many NFL stars are hoping that when it comes to the Pro Bowl in Hawaii, aloha doesn’t mean goodbye.

The NFL all-star game doesn’t have a home beyond Sunday’s game. League and Hawaii officials are negotiating a deal to keep the game in the islands, which is hosting it for the second straight year after it was played in Miami in 2010, breaking a 30-year run in Hawaii.

“It takes away from the game when it’s somewhere else,” said Miami Dolphins receiver Brandon Marshall, who also selected to the Miami game two years ago. “It’s always a privilege. It’s always an honor to be selected to a Pro Bowl. But this is what the Pro Bowl is about — paradise. so it would suck definitely if we no longer come out here.”

some players went as far as saying they wouldn’t participate if the Pro Bowl was moved.

“That’s a lot of the players’ attitude, I think. If it’s in an NFL city, you’re in those cities quite often,” Minnesota Vikings defensive end Jared Allen said.

Allen and other players said the game belongs in Hawaii, where it’s more family oriented, relaxed and considered a reward for the hard work they put it during the season.

Jacksonville running back Maurice Jones-Drew’s first Pro Bowl was in Miami, which he said was a great experience.

“But it’s nothing like coming over to Hawaii. This is my first time here for the Pro Bowl, and it’s great,” he said.

In Hawaii, the players are treated to a beachside hotel to themselves. They sip on colorful, tropical drinks and lounge around the pool, golf or wade in one of the white-sand lagoons at Ko Olina Resort.

“In Miami, we didn’t have the whole hotel. You’re signing autographs 99 percent of the time at the hotel. It was just chaotic,” Allen said. “Guys weren’t showing up. You had a lot of alternates in and out. over here, it’s kind of what everybody looks forward to. … I like it here. I’m a big fan of tradition. It started here. we should keep it here.”

But the Pro Bowl wasn’t born here. It was hosted for years in Los Angeles before jumping around the country in the 1970s, going everywhere from the Kingdome in Seattle to the Arrowhead Stadium in Kansas City.

The game was first played at Aloha Stadium in 1980 with New Orleans Saints running back Chuck Muncie leading the NFC to a 37-27 victory. The winners earned $5,000. On Sunday, the winners earn nearly 10 times that amount.

The state is paying the NFL $4 million per game for the rights to hold this year’s game. about seven months ago, Gov. Neil Abercrombie opposed the cash-strapped state paying millions to host the Pro Bowl when the money could be used for education.

“You can’t do things like give 4 million bucks to a $9 billion football industry and not give any money to children,” Abercrombie said then. “You’ve got this spectacle of these multimillionaires and billionaires out there arguing about how they’re going to divide it up, and then they come and ask us to bribe them with $4 million to have a scrimmage out here in paradise.

“We’ve got to get our values straight and our priorities straight.”

On Tuesday, however, Abercrombie changed his tune when he crashed the NFL’s press conference and spoke in favor of keeping the game here. The governor said the state would like to continue hosting the game, “and we’re going to do everything we can to make sure that comes about in a fashion that will make everybody very, very happy.”

a House economic development committee on Thursday will discuss establishing a Hawaii Sports Task Force to coordinate efforts to keep the Pro Bowl in Hawaii, as well attract other pro sporting events.

Last year’s Pro Bowl attracted 17,000 visitors to the state, generated $28.2 million in visitor spending and created $3.1 million in state taxes from people who traveled to attend the game.

Hawaii Tourism Authority President and CEO Mike McCartney said the agency is still in discussion with the NFL for the future of the Pro Bowl beyond 2012.

“We have enjoyed a wonderful partnership with the NFL and we look forward to continuing this relationship as well welcoming the NFL players, their families and all the fans for an exciting game on Sunday,” he said in a statement.

Denver Broncos cornerback Champ Bailey is no stranger to the islands. Bailey is making his 11th trip to the Pro Bowl.

“A lot of people wouldn’t come to Hawaii if not for the Pro Bowl,” Bailey said. “It would be disappointing if they moved it, but I have no say in it. If I did, I would say keep it here because I love it here.”

Perhaps no one is enjoying it more this week than Oakland kicker Sebastian Janikowski, who is making his first trip to the Pro Bowl in a dozen seasons in the league.

“Twelve years,” he said. “I’ve been waiting a long time for this. hopefully many more to come. Every time somebody asks me how many times I’ve been here and I say it’s my first, they seem to be surprised and shocked. I’m just happy I got here, finally.”

NFL stars wish Pro Bowl remains in Hawaii

juliette lewis

by on January 26, 2012

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juliette lewis

Yesterday at 1:10 AM The presence of the congresswoman injured by a would-be assassin provides an element that transcends politics.

The associated Press

WASHINGTON — in a bittersweet farewell, Rep. Gabrielle Giffords accepted bags of chocolates and a big presidential hug as she claimed her seat one last time in the House of Representatives Tuesday night.

Giffords, who has regained much of her ability to speak and walk after a gunshot wound to the head Jan. 8, 2011, will leave Congress this week to focus on her recovery. but first, she wanted to attend the State of the Union she was forced to miss last year in the uncertain days after the shooting.

Just before President Barack Obama was to speak at 9 p.m., Giffords quietly entered the chamber under her own power and made her way the few steps to a seat that had been reserved for her. Hug No. 1 came from friend Debbie Wasserman Schultz of Florida. Giffords’ colleagues stood and gently applauded her.

"Gabby! Gabby!" some of them chanted.

Limping a little, Giffords beamed around the chamber and raised her left hand to wave. Rep. Louis Gohmert, R-Texas, approached with two bags of chocolate, which Giffords took, grinning.

She looked to the gallery to wave at her husband, astronaut mark Kelly. When First Lady Michelle Obama took her seat next to him, she waved, too.

The president himself swooped in with a big bear hug around Giffords’ tiny frame, grinning widely before climbing to the rostrum for the speech.

She has inspired gestures of bipartisanship. Last year in the tender days after the shooting, members of both parties sat together across the chamber, rather than Democrats to the president’s right and Republicans to his left. many lawmakers did the same this year.

Throughout the speech, Republican Rep. Jeff Flake, sitting at Giffords’ side, repeatedly helped her stand as her fellow Democrats applauded Obama.

Giffords’ presence may be the only element about the event above politics.

Obama used the highest-profile pulpit in the land to reclaim the spotlight from Republicans battling for the right to face him in the general election. he was speaking to a Congress cranky after a year of the most bitter partisan fighting in recent memory and the public’s widespread disapproval.

He’s weaving a narrative about economic fairness and zeroed in on the richest Americans who pay a lower tax rate than those who bring home a regular paycheck. Obama didn’t say it, but Republican hopeful Mitt Romney, a multimillionaire who released his tax return for 2010 and an estimate for 2011, is one of the nation’s wealthiest in this category.

Billionaire Warren Buffett has said it’s unfair that his secretary pays a higher tax rate than he does. Emphasizing the point, Buffett’s secretary, Debbie Bosanek, attended the address in Michelle Obama’s box.

Republican leaders pre-labeled Obama’s blueprint a "pathetic" rehash.

The political subtext seems trivial compared to the real and wrenching journey Giffords has traveled from the "Congress on your Corner" event a year ago in Tucson that turned violent and changed everything for her to the House chamber Tuesday night. the shootings left six dead, Giffords recovering from a bullet wound to the head and 12 others injured.

The prospect of the Arizona Democrat taking her seat Tuesday night is an emotional milestone for many on Capitol Hill. Last year, her colleagues left it empty in her honor, a visual symbol of the difference between real tragedy and Washington melodrama.

Much rehabilitation awaited Giffords.

She has since regained a halting ability to speak and walk on her own. she was so disgusted about the way Congress was handling the debate over whether to raise the nation’s debt ceiling in August that she made a surprise appearance in the House chamber to cast her vote.

The House gave her a standing ovation and sustained applause, one of the rare bipartisan moments in Congress last year.

Circling back to the beginning of her ordeal, Giffords was in Tucson Monday finishing the meeting she started on the morning she was shot, and bidding farewell to constituents who have supported her through her recovery.

She met in her office with other survivors of the shooting rampage, including Suzi Hileman, who was shot three times while trying to save her young friend and neighbor, 9-year-old Christina-Taylor Green. the little girl died from a gunshot wound to the chest.

And in her last act in Tucson as a congresswoman, Giffords visited one of her favorite charities, the Community Food Bank of Southern Arizona.

The food bank established the Gabrielle Giffords Family Assistance Center with $215,000 it received in the wake of the shooting. the center has helped 900 families get on food stamps in the last year and offered guidance to needy families seeking assistance with housing, insurance, clothing and other basic needs.

Giffords and Kelly then jetted Monday night to Washington, her spokesman said, and spent a quiet day before the big speech and her farewell.

She is expected Wednesday to vote on one last bill, a measure she co-authored to impose tougher penalties on smugglers who use small, low-flying aircraft to avoid radar detection and bring drugs across the Mexican border.

The woman whose improbable recovery has captivated the nation hinted that her departure from public life might be temporary. she promised in a tweet: "I will return & we will work together for Arizona & this great country." 

Tweet

Need oxygen? Nitrous oxide? maybe some Helium? Airgas (ARG) can provide just what you need. Airgas is the largest distributor of gas products for industrial, medical and specialty uses in the United States. In addition to its cylindered or packaged gas products (like nitrous oxide, argon and helium), Airgas distributes related chemicals and equipment (hard goods), including refrigerants, ammonia products, welding supplies and safety products. Airgas employs over 15,000 people at 11 regional divisions. Its headquarters is in Radnor Township, Pennsylvania.

At its most recent conference call on October 27, 2011, Peter McCausland, Chairman and CEO of Airgas, announced that, although volumes are still below pre-recession levels, the earnings per share for the second quarter were up 24% from the previous year, providing dividends of $1.03 per share per year.

Rising hard goods product cost had a negative effect on hard goods gains for the quarter. Additionally, there were some logistical disruptions in the supply chain for certain gases; McCausland specifically mentioned argon, helium and acetylene. to adjust for these increased costs, he announced a pricing action for both gas and hardwoods for the new quarter.

Since the beginning of the fiscal year in April, Airgas has acquired five new businesses, with total annual revenue of some $70 million combined. Acquisitions totaled 2 percent of sales during the second quarter.

In his summary, McCausland noted that many of Airgas’s customers are becoming larger through consolidation. the expansion of the Strategic Accounts Program (SAP), a sales initiative focusing on smaller numbers of larger clients, thus seems on target. the first four regional companies are now set to convert to the SAP model, with the complete implementation expected by the summer of 2012. Currently, SAP accounts are credited with over $1 billion in annual sales.

Airgas repelled Air Products and Chemicals (APD) in February, 2011 and hasn’t looked back since, with its stock price increasing around 30% since the rejection and doubling over the last two years as shown below – (click to enlarge):

Airgas’s Price-to-Earnings (P/E) ration is currently around 24, which is pretty expensive. As a point of reference, Airgas’s competitor Air Products & Chemicals P/E is around 16. With Airgas’s upcoming conference call on January, 26, 2012, an investor in Airgas might be a little queasy with the stock’s large appreciation over the last two years and its pricey P/E. Some bad news in the company’s upcoming conference call could cause the company’s stock price to decline. an investor in this situation might consider a collar position. A collar can be entered by selling a call option against an existing or purchased stock with some of the proceeds from selling the call option used to pay for a protective put option. the beauty of the collar strategy, is the insurance or protection for the position does not require additional capital to acquire.

Using PowerOptions search tools, a collar position was found for Airgas with a potential return of 0.9% and a maximum potential loss of 6.6%. if Airgas pays a dividend in March as the company has previously, the position will also take advantage of the dividend. the company has been paying a quarterly dividend of $0.32 and with the quarterly dividend the collar has a potential return of 1.3% and a maximum potential loss of 6.2%. the specific call option to sell is the 2012 April 82.50 at $2.70 and the put option to purchase is the April 2012 75 at $1.95. A profit/loss graph for contract of the collar including the divided for Airgas is shown below:

As a bonus, if the price of Airgas’ stock is greater than or equal to the $82.50 strike price of the sold call option at April option expiration, the position will return 3.2%.

Investors can combine collar investing with dividends to generate income while simultaneously protecting their investments from catastrophic price declines.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Protecting An Investment In Airgas And Taking Advantage Of The Dividend – Seeking Alpha

Chuck Pagano joined an exclusive club Wednesday, becoming just the fourth Ravens defensive coordinator to become the head coach of another team.

The Colts announced Pagano would become their new head coach just three days after the Ravens lost to the Patriots in the AFC Championship.

The Ravens defense he coached in 2011 ranked among the best in the league in every statistical category including sacks, rushing and passing yards against and points against. Pagano was only defensive coordinator for the 2011 season, serving as the Ravens' secondary coach from 2008 to 2010.

Previous Ravens defensive coordinators turned head coaches include Cincinnati Bengals head coach Marvin Lewis, former San Francisco 49ers head coach Mike Nolan and new York Jets head coach Rex Ryan.

All three found relatively unfortunate fates in their new positions.

Lewis record with the Bengals stands at 69-71-1. Nolan went 18-37 with the 49ers and was ultimately fired. And Ryan, the most successful among the group, has been to the AFC Championship twice but is coming off an 8-8 season with his team in disrepair.

Pagano can certainly hope for more than the mediocrity of his predecessors. Unfortunately, Indianapolis may not be where he finds it. in an interview with the Indianapolis Star, Colts future Hall of Fame quarterback Peyton Manning described the franchise as "not the best environment."

With trade and retirement rumors surrounding Manning's future, Pagano is stepping into a mess that could very well involve a rookie quarterback at the helm of a team that went 2-14 in 2011.

Good luck with that.

Dear Madam Speaker of the House Elect,

Congratulations on your recent electoral victories that returned your party to the majority in the Congress of the United States. by now the celebrations should be winding down, the press has begun looking for the flaws in the party, and the Democrats are facing down the formidable and depressing state of the union of late 2006.

It is in the spirit of the Democratic Party’s election message that I am writing this letter to you and your entire cohort of fellow Democrats. The nation has put its faith and hopes upon your shoulders, most especially in the need for the Congress to restore checks and balances to the national government. there are many variations on the hopes of the electorate, but the most concise, pithy summary is this: please, don’t screw up

The biggest issue facing your leadership is the gargantuan quagmire in Iraq. there are people calling for immediate withdrawal, sending more troops, and impeaching messers Bush and Cheney. you have exhibited wisdom in refraining from entertaining the latter.

There is nothing valuable to be gained in impeachment proceedings at this stage. The mechanism of impeachment hurts the ability of the national government to function, and therefore could lead to more animosity and waste than we can stand after the long war. The appeal of impeachment will bring the same kind of short-term catharsis to some that invading Iraq gave to others. Besides, the White House crew will change in two years. instead, America and the world need you to get honest answers to real questions that affect the present and could disrupt the future.

Above and beyond all inquiries, the Democrats must answer this question: why did the United States get pushed into a war against Iraq?

We knew in 2002, 2003, and subsequently that containment policy was keeping Saddam Hussein penned in and relatively harmless to his neighbors. We know that he detested bin Laden and religious fanatics, who were rightly perceived as credible threats to his dictatorship, more than he disliked the United States. We know that Iraq had no weapons of mass destruction, no ability to launch missiles at Europe or the U.S., and no involvement in attacking the World Trade Center or Pentagon. We know that the senate’s intelligence committee wasn’t completely convinced of the poor evidence it had to peruse. The CIA knew, and told the White House, that the yellow cake story was bogus.

Given that there is not one single piece of credible evidence that either linked Iraq to 9-11 or substantiated claims that Iraq was an imminent threat to the U.S. or its allies, it is particularly incumbent upon the new Congress to find out why the nation was marched off to war in Iraq. there is nothing you can–or must–do that will come close to the importance of answering that question.

Yes, Medicare must be fixed, and the government must have the ability to bargain for better prescription drug prices. The middle class, or what’s left of it, must have tax relief rather than supporting America’s richest two percent. And yes, the minimum wage must be raised for those states where lowest-wage workers truly have nothing to gain by being employed. But you must also ensure that Congress does not vote itself any further raises, and that senators and congressmen actually read essential proposed legislation, such as the PATRIOT Act, before voting it into law. And please, no more multi-million dollar bridges to nowhere.

Above all, you must establish the reasons for the war that defines this presidency. The United States is a nation of law, and until this question is resolved, Americans will be justifiably wary of the government and its ability to act in their interests. Law is predicated upon evidence, so famously stated during the O.J. trial as if the glove don’t fit, you must acquit.

The evidence leading to the invasion and subsequent occupation of Iraq has never fit. as the elected safeguards of constitutional law, the new congress must expose the process that led to the gross misuse of intelligence and, ultimately, the invasion of a sovereign nation that had not committed a transgression against America. if we do not learn from this experience, it can happen again. Lies started the Spanish-American War. Lies perpetuated the Vietnam War, and lies got the United States into Iraq.

The public has grown used to politicians being less than forthright, but there must be a limit. When that dishonesty leads us into armed conflict, the public cannot accept anything less than the truth. you and the Democratic Party now have a bit less than two years to prove that the public can trust you when the matter counts.

So please, don’t screw up