For instance, Netflix is in this week’s portfolio. The online movie rental giant announced a new $175 million dollar buyback plan. The program will run through 2009 and the company added that the buybacks will be made from time to time depending on market conditions. On Monday, January 26, 2008 the Los Gatos, Calif.-based company reported strong fourth quarter results even amid weak consumer spending. In the fourth quarter, Netflix added 718,000 customers, an increase of 26% from 2007, bringing their net customer base to about 9.4 million. The company earned $22.7 million, or 34 cents a share, up 45% from net income of $15.7 million, or 23 cents a share, in the same period last year. Revenue for the fourth quarter came in at $359.6 million, a 19% jump from revenue of $302.4 million in the fourth period of last year. Revenue for the full year 2008 was $1.365 billion, up 13% from $1.205 billion for fiscal 2007. In addition to having an immense library (with all the latest releases) for customers to choose from, Netflix is also gaining popularity from their new internet streaming videos. “Consumers embraced the Netflix experience in near record numbers last quarter” said Reed Hastings, Netflix co-founder and CEO, “with growth in our core DVD offering and growing momentum with internet streaming.” After Netflix delivered the strong quarter and issued optimistic forecasts, NFLX stock jumped over 8% in extended trading. Cantor Fitzgerald issued a bullish note after word of the strong quarter hit Wall St. Analyst Derek Brown commented, “Netflix posted blowout 4Q08 results that topped expectations and guidance across the board, with management offering an optimistic outlook for 2009. Collectively, we believe these data highlight the compelling relative value that Netflix offers entertainment-hungry, cash-strapped consumers and a business that is far more recession-resistant than most.” Brown has a buy rating on the stock and boosted NFLX price target to $38 from $29. We also like to see that Renaissance Technologies holds NFLX in their successful fund. Renaissance Technologies is a New York-based hedge fund started by Jim Simons in 1982. Simons only hires PhD’s and the fund mainly employs computer based models to predict price changes in easily-traded financial instruments. The fund is highly secretive but we know that some of its top holdings are Amgen and Linear Technology Corp. So we have a new buyback, a very impressive fourth quarter, a buy rating with inflated targets and a noteworthy fund buying shares. It may be time to add NFLX to your portfolio.

Next on the list is Quest Diagnostics. The global leader in diagnostic testing announced that its board approved a buyback plan worth $500 million. During 2008 the company spent about $254 million repurchasing 5.5 million of its common shares, which exhausted its previous buyback plan. As of December 31, 2008, the company had about 190 million common shares outstanding. Credit Suisse analysts estimate that every $100 million in stock buybacks equates to about 2 cents in EPS growth. "This repurchase program demonstrates confidence in our performance and commitment to increasing shareholder value," said Surya N. Mohapatra, Ph.D., Chairman and CEO of Quest Diagnostics. In addition to the new buyback, Quest also reported stellar fourth quarter results with total revenues topping $1.8 billion. Fourth quarter net income came in at $169.8 million, or 87 cents a share, compared to a net loss of $5.3 million or 3 cents a share in the year-ago period. Another highlight from the quarter was that cash flow increased to $363 million. "We delivered another quarter of solid earnings growth, completing a year of strong performance. For the full year, earnings per share increased 14%, revenues grew 8% and cash flow exceeded $1 billion. I am very pleased with our achievements," said Surya. It’s good to see that analysts from Credit Suisse see upside potential in DGX. After the solid earnings report CS reiterated it’s outperform rating and increased their price target to $59 from $56. Ralph Glacobbe from CS commented, “Shares of DGX finished the day up 10% behind a 4Q EPS beat, and 2009 guidance that came in ahead of expectations. Despite slowing top-line trends, 4Q showed impressive margin performance, which is expected to continue in 2009.” The Madison, N.J.-based Medical lab operator expects 2009 EPS in the range of $3.50 to $3.70 a share; the midpoint equals about 11% growth over 2008. Quest expects 3% revenue growth and EBIT margins to approach 18%. Another bullish sign is that an astoundingly successful firm like the D. E. Shaw Group owns shares of DGX. Since its organization in 1988, the firm has earned an international reputation for financial innovation and an extraordinarily distinguished staff. The D. E. Shaw group encompasses a number of closely related entities with more than 1,000 employees, approximately $45 billion in aggregate investment capital and offices all over the world. Some of their other top stocks are XOM and OC. So we have a new buyback, a solid fourth quarter, a buy rating with an enlarged price target, and a top-notch investment firm is betting on the stock. That’s a pretty nice setup for this stock to take off.

And finally, we have JP Morgan making this week’s list. James Dimon, chairman and CEO of JPM bought 500,000 common shares of JPM stock, according to a regulatory filing submitted Wednesday, January 21, 2008. The shares were purchased at $22.9292 a share last Friday; the total value of the purchase equals $11.4 million. No one knows the company better than the chairman and CEO, so when we see James Dimon making an immense purchase like this we take notice. Perhaps Dimon believes JPM trading at $22 offers a unique buying opportunity, seeing as how the stock is down 40% in one year. On January 19, 2008 the investment bank reported fourth quarter net income of $702 million, or 7 cents a share, down 76% from net income of $3 billion, or 86 cents a share, in the fourth quarter of 2007. Total revenue decreased 1% to $17.22 billion from $17.4 billion in the same period last year. Dimon commented, "Our fourth-quarter financial results were very disappointing, driven by a loss in investment banking largely attributable to continued markdowns on leveraged loans and mortgage trading positions, as well as weak trading results.” Although the company is experiencing rough times, JPM under $30 may represent a buying opportunity. And Dimon proved he was confident that it is a buying opportunity buy purchasing 500,000 shares for his own accounts. During the 2008, the New York-based JPM acquired two failed banks, Bear Stearns and Washington Mutual. Dimon said the integration of these companies has progressed well. Credit Suisse has an outperform rating on the stock but said, “This was a difficult quarter in the face of just about every imaginable headwind—JPM results were certainly no more “terrible” than what we’d expected.” Credit Suisse admits the credit cycle is not over, and they reduced their 2009 estimates to incorporate still higher credit costs. “Management stability, capital strength and 4Q reserve build are clear positives, supporting continued market share gains and significantly greater earning power on the other side” said CS analyst. They have a price target of $45. We like to see that Legg Mason Capital Management holds JPM. This fund has a Morningstar rating of 3 stars and is run by Bill Miller. Miller currently serves as chairman and chief investment officer for Legg Mason Capital Management and managing member for LMM, LLC. The Fund invests primarily in equity securities that, in the adviser's opinion, offer the potential for capital growth. The adviser follows a value discipline in selecting securities and generally invests in companies with market caps greater than $5 billion. Their other top stock picks are Amazon and Citigroup. So we have a CEO buying shares hand over fist, strong analyst support and a successful investment firm believeing in JPM. It may be time to do some more homework on JMP.

$300 million

$10 million

Grupo Mexico Sab De Cv bought 200,000 shares worth $3,060,000

Lewis Kenneth D Lewis bought 200,000 shares worth $1,198,966. Tillman Robert L bought 200,000 shares worth $1,154,500. Sloan Jr O Temple bought 61,500 worth $367,505. Collins John T bought 31,600 shares worth $184,784.

Geologic Resource Partners LLC bought 187,290 shares worth $196,655