While CEO Reed Hastings said several years ago that a move to cable would help, the idea had been buried for quite some time until very recently, when an article surfaced suggesting Netflix was in talks with cable providers, Pendola said.
He added that this seemed odd for a company that suddenly wanted to "be part of the cord," after originally wanting to "cut the cord."
On Monday, Pendola wrote a piece that explained why Netflix would not be teaming up with cable companies, or perhaps put more accurately, why cable companies would not be teaming up with Netflix.
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"It's so untrue, it's laughable," he said, citing sources.
Comcast (CMCSA - Get Report) recently announced a new package which includes basic cable, basic Internet and HBO. Pendola added that Time Warner Cable (TWC - Get Report) is likely to follow suit by leaving Netflix off the list as well.
Comcast CEO Neil Smit also stated in the conference call that a deal with Netflix was not even close to true.
Pendola griped that this news failed to make the headlines, the opposite of the media blitz regarding the original Netflix-to-cable rumors.
However, despite some dicey quarters with earnings per share losses and negative cash flow, Netflix's stock continues to climb. That is because it keeps beating subscription estimates, he said.
Pendola concluded that subscriptions could be hitting their saturation point, which makes a move to cable seem logical. However, the cable companies have yet to budge and could clear the "technological hurdles" with ease, if they did indeed want a deal with Netflix.
-- Written by Bret Kenwell in Petoskey, Mich.