I recently heard last month?s stock market collapse referred to as Black October. I?d rather call last month the Great Reckoning. The bill for past deeds was finally served. Beyond the financials there haven?t been many bankruptcies - yet. AIG didn?t make it but there will still be insurers. GM and Ford may go under but there will still be automakers. In every industry the weak may not survive. But the Great Reckoning has exposed companies whose very businesses are becoming obsolete; they find themselves on the downward slope of secular macroeconomic trends. The Great
Blockbuster (BBI) shares this morning are selling off sharply on concerns about the company’s significant financing needs in the year ahead.
On the retailer’s post-earnings conference call last night, CFO Thomas Casey noted that Blockbuster has a $28 million term loan and a revolving credit facility coming due in August 2009. The company said it had been planning to put another bank credit facility in place early next year, but that “the current state of the banking and overall credit environment certainly muddies the outlook for that event.”
Job loss lookout. Non-farm payrolls are expected to decline for the tenth straight month this morning (8:30 AM, website). Economists estimate the U.S. economy shed 200,000 jobs in October, which would be the current downturn's worst month, outdoing September's -159K reading. The last time losses exceeded 200K in a month was March 2003. Some economists think the 27,000-strong Boeing (BA) strike could push October's count to -250K; while still within 50K of the consensus, a worse-than-expected figure "will add to the view that the economy is entering a deep slowdown, a...
Blockbuster (BBI) looks massively undervalued. The current share price of $1.15 doesn't reflect the fair value. BBI is trading at a forward PE of 3.5 which is 4 x less than the average P/E of the S&P500. BBI trades at less than 1/2 its book value of $2.69 and the price to sales ratio is amazingly low at only 0.05. Competitor Netflix (NFLX) is trading at almost 4x its book value of $5.69 at a share price of $18.95, and trades at 1 x sales and has a forward P/E ratio of 12.9.
On Wednesday the BBI share price rallied from a low of $1.16 to a high...
Financial Select Sector SPDR (XLF) – A colossal short squeeze in financial issues following word of a massive proposed bailout of US financial institutions and a ban on short sales of the same gave the deceptive impression of a flat close to the week. Today brought a return to uneasy reality for most traders, who are still struggling to make heads or tails of the broader implications of a baleful and burdensome bailout that has already brought down the cleaver on an era of securitization and could essentially do the same to the age of...
Yesterday, Real Networks (RNWK) announced "Real DVD", a software application due out later this month, that allows consumers to upload their DVDs onto their computer hard drive. Real Networks says it's obtained all the necessary DVD playback licenses for customers to legally digitize their DVDs.
With this $50 software (the introductory rate is cheaper) users can upload unlimited DVDs onto one hard drive. This allows someone who's constantly on the go to load up all their favorite DVDs onto their laptop for entertainment on those long flights.
One of the investment strategies Peter Lynch touches on in his book One Up on Wall Street is to invest in companies that that you see every day. For instance, if you notice a new restaurant or retail store is performing really well you should check out the company’s stock (assuming it’s a publicly traded company) and see how the stock is performing. This can lead to potentially profitable investment opportunities.
One company that I have recently checked out is Redbox. If you don’t know the company by its name you have probably seen its DVD...
On the heels of Netflix’s (NFLX) problems last week getting DVDs out the door to subscribers, Needham & Co. analyst Charlie Wolf this morning initiated coverage of Blockbuster (BBI) with a “Hold” rating. Wolf says that while the company is throwing lots of things at the wall to “see if it sticks,” it’s not clear the company will get the increase in same-store sales it needs to offset the drag on earnings from its 6,000 retail outlets. He did not offer a target price.
“Blockbuster’s major problem lies in its base of 6,000 stores,” writes Wolf. “The company’s challenge...
Blockbuster strengthened its online presence with the acquisition of Movielink , a leading movie download service provider in the US in August 2007.Movielink has agreements with the studios , ...
Blockbuster Inc . - SWOT Analysis Company Profile is the essential source for top - level company data and information.The report examines the company ' s key business structure and operations ...
Blockbuster Inc . ( NYSE : BBI ) shares are trading around the dollar mark and many investors are worried.The video rental chain has faced steep competition from rivals , like Netflix ( NDAQ ...
Los Angeles - Video rental giant Blockbuster ( NYSE : BBI ) plans to rollout a consumer set - top box in time for the holiday shopping season that will deliver movies over the Internet to televisions ...
by Rick Aristotle Munarriz - November 8 , 2008 - 0 commentsInstead of its ultimately fruitless pursuit of Circuit City ( NYSE : CC ) , maybe Blockbuster ( NYSE : BBI ) should turn its attention ...
Blockbuster , Inc . , is getting set to compete with rival Netflix in one more arena.According to a report in Home Media Magazine , the video rental giant is getting set to release a set - top ...
LOS ANGELES ( Reuters ) - Blockbuster Inc posted a third quarter loss on Thursday due to seasonal factors , but narrowed its loss from a year ago with the help of more consumer products and cost ...
LOS ANGELES , Nov 6 ( Reuters ) - Blockbuster Inc on Thursday said market conditions ' muddled ' the outlook for its plans to a put a new bank credit facility in place early next year , but the ...
Entertainment company Blockbuster Inc . has narrowed its third - quarter losses with the help of game sales.Dallas - based Blockbuster ( NYSE : BBI ) reported a loss of $17.8 million , or 11 ...
Among the companies whose shares are expected to see active trade in Friday’s session are General Motors Corp., Ford Motor Co., and Sprint Nextel Corp.
Blockbuster Inc. and Nvidia rise in late trading while shares of Qualcomm Inc. and Walt Disney Co. are lower after their earnings fall short of analysts' expectations.
SAN FRANCISCO (MarketWatch) -- Blockbuster Inc. said late Thursday that its third-quarter loss narrowed to $17.8 million, or 11 cents a share, from $34.4 million, or 20 cents a share, in the year-ago period. Revenue fell to $1.2 billion from $1.24 billion last year. Analysts surveyed by FactSet Research estimated a quarterly loss of 15 cents a share on revenue of $1.27 billion.
SAN FRANCISCO (MarketWatch) -- Blockbuster Inc. said Wednesday it is reaffirming its 2008 adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, outlook and expressed "comfort" with analysts' estimates. Analysts surveyed by FactSet Research are forecasting the company to report a loss of 15 cents a share on revenue of $1.27 billion in the third quarter. For 2008, Wall Street is projecting the company to report EBITDA of $304.7 million. Blockbuster also said its domestic same-store revenues rose 5.1% while its domestic same-store rental revenues increased 0.8% in the third quarter. The company is scheduled to release third-quarter...
