1. LDVIC 45.90% vs S&P500 30.75% (diff. +15.15%)

2. DISCLOSURE

3. Investor Psychology :
The best investment analyst is going to be right two out of three times (TEMPLETON)

4. 1) What is Risk?

5. FREE CASH FLOW

9. Netflix:
MCAP: $140 billion
Share: $328 Net debt: ~$3.9 billion Streaming content obligations: ~18 billion
EV: ~$140 billion
FY 2018: FCF of $3-$4 billion

10. Free Cash Flow Margin

11. Free Cash Flow Margin

12. Key facts:
Estimated revenue up 41% for Q2 2018
Average selling price up 12%

13. Amortization of Content

14. 2015 content was $4.3 billion
2015 Revenue was $6.8 billion

15. 2017 content was $10.4 billion
UP 140%
2017 Revenue was $11.7 billion
UP 72%
-Streaming costs are outpacing revenue growth
- Netflix's costs are growing faster than its revenue

16. Change of Estimate
Capitalized Costs need to come off balance sheet

17. K, it states,
'The amortization period typically ranges from six months to five years.‘
Fast forward to its K and it now states,
'[...] we amortize the content assets [...] over the shorter of each title's contractual window of availability or estimated period of use or ten years.'

18. COMPETITORS