6-months, but had I and you bought in it would have been around 17/share
back in September. Which is what picked it up at. At the time the big
deal was home much business they were taking from Blockbuster. Then BB
did its thing with mail-order movie rentals. Many things happened and
BB started dropping fairly quickly and it now looks as though it may be
well oversold and has reached a bottom. Current Citi analyst from
yesterday:
Citi adds Blockbuster Inc (NYSE: BBI) to the 'Top Picks Live' List.
Price target $8.
Citi analyst says, "At the current depressed valuation level, we see
limited downside to BBI. BBI has several opportunities for BBI to boost
results, including: 1) share gains from in-store competitors, 2)
improvements in Total Access terms/pricing, 3) an improving title line
up, 4) the store base revamp, and 5) the five point distribution
strategy (in-store, on-line, by mail, kiosks, and flash card media).
Furthermore, we believe the movie rental business should hold up well in
a tough economic environment as it is one of the cheapest forms of
entertainment."
Now this sounds great a possible 400% increase but from a $2 stock,
everyone can get in on that. It's not like waiting for Visa at $40 a
share and hoping it does the Master Card thing but real potential for
the rest of us without the millions to spare.
My recommendation. BB is still doing well, gave surprising results
recently, they are still everywhere to be seen, some of it's competition
is going out of business (mainly movietime) and they are very well
valued currently. Watch for the price increase supported by strong
volume then buy some and continue to buy up.
BTW NFLX is trading at 31.23 currently, almost a 100% in the past 6
months.
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