Weekend Reading

18 November 2016 | by Paul Perrino, CFA

A summary of this week’s best articles. Follow us on Twitter (@INTRINSICINV) for similar ongoing posts and shares.

Is Netflix Disney’s next big buy and is Reed Hastings its next CEO? (Peter Csathy, @pcsathy, TechCrunch)

Netflix’s rise has caused a shakeup in the media industry. Distributors, such as AT&T, are now trying to compete on equal ground with OTT‘s, by acquiring content creators. AT&T recently acquired Time Warner for $85 billion. This now gives AT&T control over such content assets as HBO and Truner. Consolidation among content creators may also be appealing, if one has a better direct distribution infrastructure or management. In the case of Disney, Netflix may be their solution.

Trouble Brewing in Commercial Real Estate (Peter Grant, @PeterGrantwsj, WSJ)

The real estate market is still working through the loose lending that occurred before the financial crisis. “Ten-year loans issued in 2006 and 2007 are now coming due, and many borrowers aren’t able to pay them off despite rising property values.” Mortgages that are more than 60 days late on their payment saw a 1% increase in September to 5.6%, “from a 4.6% delinquency rate earlier this year.” Rising interest rates and defaults in commercial real estate could lead to a slowdown in the sector.


The results of the election shocked many, but even if the result was what you expected, the resulting week after the election may have been a surprise. Asian stocks and US futures dropped more than 5% during the night of the election. The US market rebounded and ended positive at the close of open market hours on that Wednesday. Hindsight is always 20/20 and it’s not always clear how the market will react to certain events.

TRADE THE “MAYBES” AT YOUR PERIL (Claus Vistesen, @ClausVistesen, Alpha Sources.CV)

This is a quick summary of some of the potential impacts and unknowns from the result of the election.

Ensemble Capital’s clients own shares of Netflix (NFLX).

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