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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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bairdnewsboys (< 20) Submitted: 1/11/07 6:43 PM : Start Price: $6.35 BBI Score: -41.72
Debt is the grimm reaper to BBI, not NFLX. Cash flow has turned positive recently--enough to service debt and reduce the threat of failure. The success of recent promotions has clearly demonstrated that having actual store locations is important to this business, and may actually handicap NFLX's growth. The recent announcement to improve store turns should also help BBI. It's a spec, but BBI just might fool most and become a $10-$13 stock--note the CEO put his own money where his mouth is.
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CaptFoolDawg (72.02) Submitted: 4/13/07 3:16 PM
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Well the CEO is gone and they are closing stores...so what now. Curious if you still think this is an OUTPERFORM.Thanks BNB, good luck in CAPS.CaptFoolDawg.
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kristm (99.86) Submitted: 5/06/07 2:49 AM
All those actual stores add to the debt and cash flow problems. It costs a LOT more to operate 8,000 brick n mortar Blockbuster stores than it costs to operate Netflix's 44 shipping centers. And the Total Access plan isn't that great - it requires a separate store rental account and any disc rented from the store has a due date and potential late fees. Plus the store exchange gives customers nothing beyond the same titles available in store - customers who like anything outside the mainstream are out of luck and have to stick to the Web site.
greenlight1 (< 20) Submitted: 5/18/07 11:34 AM
I would agree with you that the cost of the brick and mortar stores is a lot more than the shipping centers. I would have to disagree with you about the Total Access not being that great. I have been a member of both Netflix and Blockbuster and for the same price I get the benefit of exchanging a new movie any day of the week at any time I want for no additional cost. The potential late fees actually pretty weak. Blockbuster to the detriment got rid of late fees at their in stores. An in store rental that has a due date of 2 days won't be charged a late fee for over a week later which is you buying the movie. I actually think Blockbuster needs to bring back the traditional late fees. My local Blockbuster is always packed with a line when I do go to get a movie there so the return of the late fees would help that store's bottom line. Overall I think Blockbuster's product is superior to Netflix but I would agree financially Blockbuster will not be able to sustain.
billddrummer (86.08) Submitted: 8/07/07 12:25 PM
And their debt ratings got cut, with negative implications. Sounds to me like the ratings agencies think the company will continue to underperform. I think they will close more stores this year, as the debt load forces them to reduce their brick-and-mortar footprint.
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