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BBI Blockbuster. Once again… can it possible go further down? May 29, 2009

Posted by deminvest in my free stock.
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Same stupid question we, the uneducated investors, pose:

Can BBI (or any other stock) it go further down???

Of course it can! One of the few things I have learned it that they CAN ALWAYS GO DOWN

I have 60 free BBI shares. When I got them (by my free stock strategy), it was a year ago and they were worth $4.11 each, form a total amount of $ 246. They went 80% down to $0.7 and are worth $40 now.

Now I do wonder… 80% down from last year, 95% down from year 2002. Is this company going broke?

In my opinion, not really broke. Less than $1 B debt is not sucha big deal for a company with sales over $5 B. Will this recession hurt Blockbuster painfully? IMHO not really. Renting a movie is a cheap entertainment for a family. Picking it up at a Blockbuster store may be fun.

According to Blockbusters, they will post earnings in 2009 around $ 40 M.  For a company that has market cap around $140 M it would mean P/E ratio under 4.

So we are back to the point. Will BBI fail? Some analysts fear they may fail.

I think BBI won’t fail, but I have strong doubts.

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