Is RWT Redwood Trust a good value investment?

First let me say I just sold all my Redwood Trust Inc $RWT positions.  Redwood trust was part of my value portfolio for 7 days short of a year.. Although I could have held the stock for a few more days I had not reinvested the dividends so the gains were minimal and with the uncertainty going forward with the fed it could have proven a disaster; and still may prove to be a disaster when the Fed starts QE3 or what they are calling stealth QE3.

Redwood trust is a good REIT, it just faces a lot of challenges, some of these challenges I waited patiently for close to a year to see if they were handled in the federal government level but it seems the government is doing just about everything and anything to keep the private sector from becoming the dominant force in housing.  They are artificially keeping the rates down, introducing more regulation.. In fact as I write this only 12% of the 400 expected Dodd-Frank rules have been introduced.  The results and affect these rules will have in banking and financial companies like Redwood Trust are really an unknown at this moment.  With all the new rules these private MBS holders my be left holding an unwanted bag of securities.  Here is a link to a good article on Dodd-Frank

http://www.marketwatch.com/story/one-year-on-most-dodd-frank-changes-still-to-come-2011-07-21

At this moment with the market continuing to climb higher and higher the risk also climbs higher and higher,  With that in mind although I feel RWT is a good investment I just don't feel it is a great investment and right now we only want to hold on to investments that have a low risk-high reward characteristics.  RWT is the kind of company whose stock will depreciate with the market but not appreciate when the market moves up and cash may be better used for investments that can return higher reward when a correction happens. To put it simply no one wants a stock that will drop when the market drops but may meander around the same price range while the market rises. It's time to remove some risk from the table, For those who aren't value investors; yes the higher the market goes the higher the risk goes, the lower the market goes the lower the risk.  

Why is Netflix expanding so quickly?

Do you think Netflix (NFLX) stock has risen quickly? Well it has been by far the best investment I have ever made.  The stock has appreciated 916% in under 5 years..  This kind of appreciation would be great for 50 years, let alone for under 5 years.   In this day in age of rapid movement, where a company can go from hero to zero in just a few years time(RIMM, NOK, HPQ) growth and earnings go hand in hand, and when it's your time, you have to go.  You have to go quickly because the other guys are planning right behind you. I think this is the reason for Netflix's grand plan of rapid growth..

"You snooze you lose.." This phrase can be so true in business and more in the technology world, even in investing, waiting for a perfect entry.  Without a doubt the board of Netflix feels that if they don't move now they will lose their chance to maximize their control of the online movie community.(Globally)  The one chance to be the dominant player in a new field, a field that could be around for a very long time.

For some reason some major players believe the CEO of Netflix is a real smart guy.. This new guy in the digital field is now on the board of Microsoft and Facebook, two of the biggest names in business and consumers.. (If you think Facebook is not in business, you are way wrong!!) With the CEO being on these boards will it open up a gateway to a direct link for Netflix to go on let's say the next windows operating system as an integrated feature bringing the desktop ever so closer to the living room and not just the office?? Or how about Netflix movies playing on your facebook page as you see your updates? It is no secret, people now watch tv while checking their facebook.. So the questions becomes why not integrate facebook and tv? Why not bring in a netflix player on your tv screen within facebook.. Both riding the success of each other to a higher level..   Facebook hitting the big screen and Netflix hitting the social network with the biggest player in town.

Netflix will grow, might even grow hated by those few consumers who jumped in early and took advantage of some very low pricing.  In the end, Netflix has really big potential! Even more now that it has the scale of size, two great partners, and the advantage of being a trend setter.  With the new pricing of 7.99 and 15.98 just released you will see some consumers change in how they view Netflix so expect big swings in the near future..