OK, before you start to laugh let me tell you that periodically I do a crazy speculative buy. I decided to purchase today 10,000 shares of (BLOAQ.PK) BlockBuster Inc for a Whopping $700 and some change or roughly 7 cents a share. Even though speculative, I have thought through this carefully and will tell you my reasoning why this could be a good long play or short term trade. Either way if I make money that is all I care about.
My first test of this stock was when I was helping my son move this weekend. Always listen carefully to the young twenty somethings. You can learn allot from them. He was talking to us about how he thinks NetFlix really sucks with their price increase. He said he has been watching shows on Hulu and just orders movies from his BlockBuster app.
I said Blockbuster? He said yes that they have an app now that he can just order streaming movies from. I thought this was interesting and they also have the vending machines like Red Box. OK, this sounded too good to be true. Everything I had heard is that BlockBuster has claimed Bankruptcy and was history. Well, let me tell you they are not history yet and seem to be coming back to me after hearing the younger in the group telling me they were getting DVD’s and ordering streaming movies from BlockBuster.
After some digging I read a few articles on Blockbuster (BLOAQ.PK). They completed the sale of essentially all of their major assets to Dish Network for something like $320 million for a company valued at over $800 million.
Dish Network got an established brand name and 1,700 physical store locations. A piece of every video-rental pie, from DVD-by-mail subscriptions and strip-mall rental kiosks to the every popular pay per view digital streaming services. Now if they play the strategy right and focus on the best of both RedBox and the streaming I could actually see BlockBuster bounce back.
If they can build there reputation back up, reduce costs and increase earnings and mend some bad relationships created from the bankruptcy I think they could be a viable player again. I mean come on they were a household name and went down in flames because they did not keep up with the moves in technology.
I think if they sit back with this new ownership and look at the success of RedBox and the positives and negatives of some of the recent moves that Netflix has made and set themselves up to take the best of both worlds, you could have a come back king.
Now of course this is all based on how smart their strategic planners are and how good they are at execution. I really do think they have the Brand already and as a speculative play I will take the risk.
I know the last stock a few years ago my son kept telling me about and how great their products were was Apple Inc. Enough said.
What do you think about BLOAK.PK BlockBuster Inc. as a speculative play? Can they come back as a successful player? Leave Your Comments Please!
Take Care and have a great week!
i bought 2850 shares about 250 dollars worth minus all the broker fees of course. i think if dishnetwork uses blockbuster to stream movies like netflix does coupled with the stores and rental boxes we could have a winner on our hands it could take years but i have plenty of time and almost 3000 shares.
I agree completely. I think they could really be moving in a positive direction. Good luck with your purchase.
We have bought Blockbuster stock since last January and now have 41,000 + shares. We based this own our own usage and listening to the “younger” generation talk about what they like about streaming. Next week (Sept 23, 2011), Dish is suppose to announce a new streaming plan for Blockbuster. Sounds to me like a resurrection! Regardless, it has been fun to play with the thoughts of even a possibility of big rewards. FYI: My new “smart” phone came with a Blockbuster app. GO BLOCKBUSTER!
Hi Char. Wow, 41,000 shares. I would like to dollar cost average up to that amount. I am with you, I think even if it goes back over $5, it could be a great reward. Think Dish just might get the brand turned around. Thanks for your comment!
Hello again: Sold my 41,000 shares of Bloaq today at $.34 more than tripled my money BUT…. I believe I was very fortunate. I have been researching this a lot and none of new revenues being generated by the NEW Blockbuster are tied to this stock. The stock bloaq is a zombie! It is a stock tied to the OLD Blockbuster and WILL eventually go to $0. If any monies remain in the OLD Blockbuster after the debtors are paid, then and only then will common stockholders receive any money. The stock has been going up in value because amatuer investors, such as I, bought it so cheap (pennies) thinking that it was a “comeback” kid! Knowledgeable traders laughed all the way to the bank at us amatuers, as they invested and then sold at huge profits. Well, I may have been able to make more money if I waited to sell, but I am happy with more than tripling my money in less than 4 months. I want to thank all the knowledgeable investors who tried to tell us what was happening. I am just plain lucky to have gotten out in time.