BLIAQ Blockbuster: Polishing deck chairs on the Titanic

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	Francisco Logan
	San Antonio User since Jan 2010	53
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Polishing deck chairs on the Titanic

I recognized years ago that Blockbuster was a sinking ship. Even though everyone I knew went there, everyone I knew also hated them. Late fees, censorship, smarmy employees, high prices.

They've been on the way down for years due in no small part to netflix ... At this point, for people who are not into Netflix, is there any advantage to Blockbuster over Coinstar's Redbox machines? I don't think so.

I expect BBI to declare bankruptcy by the end of summer and if you sell this stock short now, you stand to make a nice chunk of change. Taking advantage today of an inexplicable 10% pop up (well its only 3 cents but still 10%).

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What People Are Saying...

Mike Barkett said at 3/24/10 2:56 PM Price action was $0.33 +0.00 (+0.5%)

once this gets scored, your score is goin' DOWN, Logan

Francisco Logan said at 3/24/10 9:15 PM Price action was $0.33 0.00 (-1.4%)

unless BBI falls off a cliff between now and then!

Ian Hall said at 3/30/10 1:15 PM Price action was $0.25 -0.03 (-10.1%)

Put on that cliff-diving wetsuit!

Josh Warner-Burke said at 4/16/10 4:23 PM Price action was $0.403 +0.04 (+10.1%)

ridiculously over-optimistic news story about BBI http://www.forbes.com/2010/04/06/blockbuster-netflix-coinstar-markets-bankr...

Josh Warner-Burke said at 4/19/10 10:06 AM Price action was $0.498 +0.10 (+23.6%)

What a breathtaking move up for Blockbuster over the last few days. I mean it could still fall, but so far a pretty disastrous prediction.

Mike Barkett said at 4/20/10 9:52 PM Price action was $0.50 -0.06 (-11.0%)

the danger of shorting penny stocks. Were this real-life, you'd likely be margin called by now unless you had it covered.

Mike Barkett said at 5/11/10 10:04 PM Price action was $0.438 +0.05 (+13.6%)

there is still a lot of time left, but this one is going from bad to worse.

Mike Barkett disagreed at 5/13/10 5:04 PM Price action was $0.50 +0.07 (+15.6%)

wow, this coverage is making me strongly consider coding virtual margin calls into the site. There is no way you'd still be holding this in real life.

Mike Barkett said at 5/26/10 8:16 PM Price action was $0.28 -0.07 (-19.8%)

wow, what a nose dive. This thing was at $.50 less than 2 weeks ago. Too bad it's not a realistic short. Seems like a good stock to gamble with both up and down. The question is, where will the needle be pointing when August 31 rolls around?

Josh Warner-Burke said at 6/14/10 11:12 AM Price action was $0.202 -0.07 (-26.2%)

WSJ: Blockbuster Seeks Bankruptcy Loan

Ian Hall said at 6/14/10 11:37 AM Price action was $0.203 -0.07 (-25.8%)

Damn...should've followed my initial "nibbler" style pick on this with an all-out collapse call. Oh, well.

Francisco Logan said at 7/7/10 11:26 AM Price action was $0.13 -0.02 (-13.4%)

You all doubted me, but after a long road we're almost at my target. With a few months left, I'll hang on and wait for the actual announcement of bankruptcy.

Mike Barkett said at 7/10/10 12:55 AM Price action was $0.165 +0.02 (+10.0%)

just doubted the feasibility of it due to margin calls, not the sentiment itself. As a PK, there will be some stupid big up days in this stock. Stay away unless you like gambling. Need to look into volume/ask/bid checks on coverage pricing...

Francisco Logan said at 7/17/10 9:33 AM Price action was $0.10 -0.04 (-28.6%)

The price at .10 (may close at a different price) was just too much to resist, so I closed.

Josh Warner-Burke said at 9/22/10 3:31 PM Price action was $0.058 -0.02 (-27.5%)

Blockbuster Inc is preparing to file for Chapter 11 bankruptcy within the next few days, a source familiar with the video rental chain's plans said on Wednesday.

Josh Warner-Burke said at 12/19/10 9:31 PM Price action was $0.172 0.00 (-2.3%)

I find it interesting how this article is always quite popular (it was an amazing pick)... but no one has ventured to bet the other way - it seems like if your timing is right you can make nice %s off this stock.

Mike Barkett said at 12/19/10 10:46 PM Price action was $0.172 0.00 (-2.3%)

well, technically I still "disagree" with this coverage. :) I thought about a low confidence counterpoint when I saw that all the new Droids came with a Blockbuster app, and again when I read about their plans to take on CSTR and NFLX, but as far as I can tell that is all centered around finding a way to exit bankruptcy effectively. Trading the pink sheets at this point is just gambling with sharks.

Josh Warner-Burke said at 3/3/11 4:11 PM Price action was $0.107 0.00 (-3.6%)

Fascinating look at the fight between creditors (such as movie studios) who want to convert Blockbuster to a Chapter 7 (so they can get paid) and other creditors who have laid out this stalking horse bid (so they can get paid). http://www.businessweek.com/news/2011-03-02/blockbuster-judge-calls-sale-pr...