A couple weeks ago, I wrote about my pessimism regarding the technology sector. The market had seemed to interpret the surprisingly good results reported by Big Blue (IBM), Google (GOOG), and even Yahoo! (YHOO) as reasons for unleashing optimism and a bargain hunting shopping spree for stocks of publicly traded technology companies. Maybe the recessionary environment and the woes faced by banks and the American consumer would not negatively impact corporate budgets for technology. My skepticism rests on the ability of secondary technology companies to weather the economic slowdown. In …

I wrote about my short thesis on Netflix (NFLX) just about ten days ago. The company just the other day reported growing earnings but disappointed with a weak outlook. The stock fell a whopping 24% as investors ran for the exits. The market responded negatively to the increase R&D costs for developing streaming technology that would allow the company to deliver long-form digital video content over the Internet. These recent expenses have slowed down profit growth and promise to weigh on foreseeable future earnings.
My short thesis …