Yes, I confess that I bought more today. It will either rebound at some point and turn a nice profit or go the way of my Circuit City Crap. The difference is, CC managed itself out of business where BBI is fighting a perception on Wall Street. NetFlix is an alternate model rather than a direct competitor. Anytime your not sure, look at Gamefly vs Game Stop. I’d rather pay a couple bucks more to touch and feel something before putting up money for it! Especially when my dollar is more important to me since I don’t know how long I will have it.
Posts Tagged ‘BBI’
Blockbuster Blues
Wednesday, January 27th, 2010
Investment Diary for May 31, 2009: BBI
Sunday, May 31st, 2009This is the first installment of the Investment Diary series.
BBI today at .70, Yahoo 1y Target Est: 2.55. My average cost was $1.54. MFFAIS shows three new holdings and four liquidations. Three Motley Fool articles on the same day. One about time to get out of Netflix, another about Block Buster mailing game rentals, and third about growth stocks. The first article reminds me that until the Internet is integrated into a TV in a way that average video consumer can use it, physical rentals are still going to rule (IMO). The second is a nice confirmation of my current decison to stick, and a possible tipping point in my debate on whether to set a limit sale or buy. The last reminds me that the CAPS rating is a one, and has been since I last got into BBI. I’ve made money on BBI twice before, and if they actually hit the Yahoo target, this will make a third time, though less money and longer holding.
askStockGuru.com has a sell price today of $1.14. That’s a pretty good profit. After hours trading is up a few cents, too.
Hollywood looks to have a good crop of movies coming out this summer. While more people will hit the theatres to forget their troubles, I can also see where a lot of people are not going to want to spend that kind of money on things they can’t eat, but will run to the rental store to vent their frustration. I also think the after hours bump is the result of bargain hunters following a roller-coaster week on the street, and that next week will also be hard on those with a weak stomach. So, my bet here would be that sometime soon the stock will dip a bit, then bounce its way back up.
Disclosure: I own shares of BBI in the real world.