Blockbuster, Inc. (BBI)

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The Company is a global provider of in-home rental and retail movie and game entertainment, with over 8,000 stores in the United States, its territories and 22 other countries.

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Avatar Tastylunch (98.75) Submitted: 4/15/08 2:59 AM : Start Price: $2.75 BBI Score: -2.89

LOL thanks Blockbuster you made my day,
your plan isn't actually all that crazy in one sense as actually having merchandise to sell would give your remaining customers an actual reason to go to your stores.

The ONLY problem is that you don't have nearly enough money/equity to buy CC. Oh forgot that did we? No problem just go get crazy financing , oh wait. Now that banks, private equity firms actually have to be somewhat responsible there's virtually no way anybody will help you fund this quixotic venture! That's coo,l you can just offer more shares of stock, your stock has had a good year diluting it won't hurt itttt... oh wait that's not true either. Good thing you don't have any debt right now hunh? Ohhhhh... you do already have more debt than equity you say? Well I guess you just really don't have a clue do you BBI on how to buy a business?

Your buyout is poorly thought out, you can't afford it and you've basically publicly admitted to Wall Street that your business model is toast by attempting to ditch it with this buyout. That's quite a trifecta that makes for a delicious bankruptcy. Bonus points for doing something even the media thinks is stupid.

I never thought I'd say this but BBI you made Circuit City's management look smart. That's quite an accomplishment.

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Avatar budgallant (44.54) Submitted: 4/25/08 1:20 PM

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You're just upset because you got thrown out of the local Blockbuster for how you like to express your love of movies, and Netflix stopped delivering to you upon customer compaints relating to the condition in which the DVD sleeves were returned.

Let's be honest here, you're another irrational Blockbuster hater who is going to lose their piggy bank savings when Netflix and their caveman corporation finally GTFO.

Well, I'm hungry. I think I'll go order a burger and wait 3 days for it to come in the mail.

See you later.

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Avatar Tastylunch (98.75) Submitted: 4/25/08 10:26 PM

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Hello Budgallant,

Actually I don't *hate* blockbuster at all. I try not to get emotionally attached to any potential investment. I could honestly care less what happens to them, stay or go. I am however not above ridiculing a blatantly bad business decision when I see one, because I like a good laugh as much as the next fella.

I actually don't really care much for movies. Usually my video entertainment consists of watching TV or playing video games if I'm fortunate enough to have free time. I used to use blockbuster's rental service but I don't anymore due to lack on interest in movies and the availability of cheap used Dvds at stores. I personally have never used Netflix either (although I know many who do) so I doubt I'll lose my piggy bank savings there. :-)

Blockbuster shareholders I think have to be disappointed at this merger proposal. When BBI brought in the current CEO I thought their chances were decent but not great at surviving as his track at 7-11 was very impressive. But then total access bombed by cannibalizing their more lucrative in-store subscribers and now they trying to buy a bad company/brand that they can't nearly afford in the toughest lending environment in decades. It doesn't really matter , BBI is on borrowed time anyway. Unless they start now someone will develop an effective way to do digital downloads and finish them off in the next 5 years or so. I think this unwise merger distracts BBI from what their real goal should be. That's my take at any rate.

I'd love to know why you think the circuit city/bbi merger is a good thing from a bbi shareholder's perspective.

P.s. I wouldn't eat that burger you get in the mail. I imagine that wouldn't be sanitary. :-)

Full disclosure : I have traded bbi a couple times in the past year.

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Avatar TheParadox (83.12) Submitted: 5/06/08 7:48 PM

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Budgallant simply disapproves of BBI "haters" because he felt the need to comment on how i needed to get out of the basement and goto the store... I should "go tell the people crowding the store to leave". It seems BBI has some personal interest if he needed to make snappy comments to at least 2 people about an under perform on CAPS.

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Avatar Tastylunch (98.75) Submitted: 5/09/08 4:06 AM

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eh some people take stocks personally. I can understand that to some degree, it's hard not to get emotional about your money. Thus a lot of people tend to "root" for their stocks and against others. Still it's not a good way to invest as it torques your objectivity.

There's a couple players on CAPS who tend to be very defensive about their picks. I've have however yet to encounter one with an allstar player rating ( a rating which admittedly I no longer have currently).

Then there are of course the pumpers too, but bbi being on the big board doesn't really have those to my knowledge.

Plus I think it's still socially taboo to rip on companies, Meredith Whitney I believe received death threats for her very correct call on Citigroup.

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Avatar TheGarcipian (99.64) Submitted: 6/13/08 10:42 PM

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Hey Tastylunch, thanks for making me laugh so hard. I'd not read your original pitch until today. Funny stuff, and all true. Congrats on getting your All Star groove back on. I knew it was there, just hiding behind those old copies of "The Nutty Professor" on the shelves of BBI. Cheers!
--Gar

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Avatar Tastylunch (98.75) Submitted: 6/15/08 5:17 PM

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Hey Gar

Thanks man I appreciate it. You can truly BBI thanks for the laugh though, all the content was truly generated by them. :-)

Yeah it's been a humbling experience losing my allstar ranking twice. Hopefully I won't a third time :-) I'll try to stay away from eating that Flubber I have stored behind my Nutty professor copies. :-) You guys are just so good I have to keep on my toes!

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