$0.64
0.02 (+3.15%)
Blockbuster, Inc. (BBI)
CAPS Rating:
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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Recs
BBI is an oversold over shorted stock. Everything has value at some point. BBI is quickly changing it's business model to accommodate the changes in video delivery. DVD continues to be the choice of delivery of videos and will be for the next 3-5 years most of the population.
BBi is selling at a conservative forward pe of less than 7, has paid down approximately 500 million in debt in the last 4years.
short interest is at close to 55 million shares or 45% of the float. naked shorts and excessive shorting has caused bbi to tumble more than justified.
BBI retail and game business is growing huge and will continue to grow based on the future of game software and console sales.
The risk reward to buy BBI in the mid 2's greatly favors the longs potential for abnormal returns holding the stock in short, medium and long term.
Business model is quickly expanding and BBI will have media delivery available in all formats.