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I know Blockbuster has HUGE financial problems and good chance on it's way to BK but this seems somewhat similar to what happenned to Sirius Radio when it was down to 0.05 or 0.06 and it wound up shooting up to around $1.50.
Wondering if I can pick up maybe $1,000 worth of Blockbuster stock at around 0.05 if it would be a good risk. I know a good chance it's going BK but thinking maybe amazon, microsoft, google, netflix, someone might buy them.
I dont think there are any buyers for them, There main compation is netflix, and the cable/sat direct feeds. Only one I could think of is Apple to get there steaming to put into Itunes/Apple tv. but apple is big enought that they can go directly to the studios and get the contents.
What does Blockbuster have of value to another company? A bunch of store locations, okay; maybe McDonald's will buy?? Probably not. A bunch of videos on plastic discs...who wants those??
Save your $1000 and put it into something that will give you a positive return.
I believe Sirius Radio was in basically the same situation, was going to go BK without a loan and last minute got money and the stock shot up from there.
Blockbuster for one name recognition. I personally do netflix but blockbuster has become the term for renting a movie even if its not a blockbuster store your going to.
Blockbuster also just recently put huge amounts of money into kiosks like red box. I dont think they can compete in this way but its another thing of value blockbuster has for someone else to acquire.
Also, I'm not expert on blockbuster but I imagine they have some type of special relationship with movie studios since they get new releases before netflix and redbox. This is also something they have to offer.
I just figure at 0.05 cents there's not much downside. Even if comes out they are going BK odds are the stock will still have a bounce or two before its gone where you could at least get your money back.
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