Shares of Blockbuster have waned to 39¢ after an in-line earnings report after the closing bell today.Prior to the earnings report, BBI had run to an intraday high of 0.54 before closing at 0.50 (+15.6%). When I took a look in the morning, BBI was available at 0.46, then bumped to 0.50 and stayed above that threshold most of the day, even with a late selloff in the market.
BBI had been at 0.25 less than two months ago. The buys in a company on the brink of bankruptcy above that level were based on conjecture, rumors, even hope. But today's earnings report revealed no silver lining, nothing new or creative to stem losses. Closing stores is one thing. Coming up with new streams of revenue is another.
Traders wanted something. They got nothing. They bailed.
With a loss of $654 million last quarter, plus debt of $1 beeeeeeeellllion, BBI shares are where they belong. The remote possibility of Carl Icahn strategizing a multi-media conglomerate that would include Blockbuster makes the shares worth considering at, mmmmm ... maybe 25¢. Unless management pulls a rabbit out of its collective arse real soon, that's where BBI is going.
At least one blogger has an idea for Blockbuster — if it doesn't want to file Chapter 11, that is.
On this note, Netflix closed at 110.01, a gain of 2.18 (+2.02%). NFLX hit a high of 119.50 on rumors of a buyout. The CEO was on 60 Minutes a few years back. Struck me as a brilliant thinker and innovator. I should've gotten some shares then.
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