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(NYSE: BBI) Blockbuster, Inc. The best of the worst and how to make money here



April 19, 2010 – Comments (7) | RELATED TICKERS: OUTR , NFLX , BLOKA.DL

With everyone carrying on about Netflix (NFLX) there seems to be a lot of support for Blockbuster (BBI) still on the Motley Fool. Personally, I have watched Blockbuster set a new 52 week low at .24 cents a share the last few weeks rise on speculation of what will happen next. 

Rumors of bankruptcy and a reverse stock split to name a couple. I had a conversation about Blockbuster with plenty of you on Motley Fool about the company via these posts. If you bought 100 shares at .40 cents a share. Well, then you made money or should be at this point as it closed to day at $0.56 0.16 (+39.63%)

Now I did not buy shares at .40 cents a share.  However, I did as of today. 141 shares as of 3pm this afternoon. I believe that Blockbuster is going in the right direction with its Kiosks and other core parts of its business. But the reason I bought them was not because of the Kiosks, it was because of the speculation outside of the company. I see more upside here before any reorganiztion. I see about another 10 to 15% move higher. So if you like taking huge risks for a small price. I say why not pick up a couple hundren shares. What the worst you will lose $100.00?? People lose more money than that to credit card fee's every year.

7 Comments – Post Your Own

#1) On April 19, 2010 at 11:21 PM, SUPERMANSTOCKS (37.63) wrote:

By the way I think Netflix is overpriced!

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#2) On April 20, 2010 at 1:33 AM, bigcat1969 (80.99) wrote:

Blockbuster just repeatedly fails and gets weaker each time.  Some times you get lucky with something like Marvel that goes through  bunch of owners before shooting skyward.  More often you get something like that mattress company that went through half a dozen or more owners and each one stripped the company as much as they could before selling what was left.  Eventually there was nothing left at all.  I see BBI as on the edge of a pink sheet stock and mostly a risk for a quick bounce if you dare stock.  Maybe someone like Portfuille (sorry about the spelling) who really knows stock can weigh in, but this just seems like a bad choice to me.  Mind you I didn't like Sirius at rock bottom prices either.

Also depending on who you trade with won't your 10-15% get consumed by your commish on the buy and the sell?  I'm a very small investor and I never go below a $1000 dollar transaction since I use Scott and have to factor in the $14 or more commish.

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#3) On April 20, 2010 at 8:40 AM, pocketrocket1 (< 20) wrote:

I think you are right that blockbuster has been making all the right moves in terms of switching to mutichannel access. They have virtually 1 billion in debt though, and have talked about a debt for equity swap on the senior sub. 2012 bonds. A possibility is a 90% dilution of your stock. Buying the small amount of shares you suggest-paying a 10% commision puts your investment in the gambling arena. I don't know if there is private equity that is going to take out the bonds, but that would be good for you(shareholder) Just remember your shorterm upside could be $500, and your downside could be $50 if you buy 100 shares at the current price minus the round trip commission.

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#4) On April 20, 2010 at 9:03 AM, Tacomatight (61.45) wrote:

I started buying in at .25 and now own 20000 shares. With all the madness associated with a stock like Blockbuster I have focused on one point and one point only in this gamble. Their CEO is the guy that turned around 7-11. When I was a kid I remember 7-11s as the place for vagrants and drug dealers to hang out. They had the best candy selection but my mom refused to let me go there because it was so trashy.

Now 7-11 is an international brand which has begun to dominate the Chinese market.

I have hated blockbuster for a long time as they sent a collection agency after me for my fines when I was in high school. But now, I have to say I think we may be witnessing a massive turnaround in this stock...a reverse split is not death. Witness AIG.

If their CEO could turnaround the most ghetto place (7-11) into an international brand, I think he will do it with BBI. Gut call.

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#5) On April 20, 2010 at 1:14 PM, SUPERMANSTOCKS (37.63) wrote:

Scottrade 7.00


That is the "commish" I pay

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#6) On April 20, 2010 at 1:43 PM, Br0oklyn (54.94) wrote:

I Honestly dont know what to think of blockbuster anymore. I use to Rent Games & Movies EveryWeekend Faithfully ! Man Was It a Thrill just to Be In The Yellow & Blue presence Just waiting to check out my items. Well times has changed and so has people. When The recession hit us all things changes and so has people, people are not willing to drive out any more and go rent a movie. The Internet has done so much for us that its making humans lazy and not wanting to do anything because its so much easier just getting online and ordering. i believe that the internet & OverPrice netflix Put BlockBuster in A Hole They Cant Get Out Of. Also Forgot to mention ShareBuilder $4 Trades. Why Pay More For The Same service.

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#7) On April 20, 2010 at 2:01 PM, SUPERMANSTOCKS (37.63) wrote:

This is true about Sharebuilder. If you buy and hold. I have lots of extras I use daily. But anyway, all the best with your BBI

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