Penny Stock Exposure » blockbuster

Two Alternatives Are Presented to Blockbuster Inc. (PINK:BLOAQ)

StockFrontRunners — Fri, 11 Feb 2011 14:34:19 +0000

Bankruptcy, closing stores, losing clients, more than one billion in debt – this is the reality for the former video rental king Blockbuster Inc. (PINK:BLOAQ). Ad campaigns changing slogans from “We are the best!” to “We are still here!” Indeed, the company is still out there, and it has lots of things to do now as its survival is at stake.

As a big company, there have been quite a lot of vivid discussions all over the media and the Internet recently, regarding the future of Blockbuster. Even a promotion came out, which will also affect the session today. There would be no sharp increase, however, since there is no major positive news to serve as a catalyst.

Blockbuster Inc. (PINK:BLOKA) Trying to Save What They Can

StockFrontRunners — Tue, 28 Sep 2010 16:29:34 +0000

Blockbuster Inc. (PINK:BLOKA) stock has been showing enhanced volume and price action after the company got bankruptcy court’s approval to borrow $25 million.

Previously a successful movie and video game rental business, Blockbuster is now engaged in bankruptcy proceedings after the company filed for Chapter 11 protection on September 3, 2010. Heavy indebted, the corporation will have to deal with $1.46 billion in liabilities, but the struggling firm desperately needs more cash. The only loan guaranteed to them is the $125 million totaling debtor-in-possession financing agreements with senior noteholders.

According to the latest headlines, Blockbuster will try to pay $40.4 million to various studios to keep up the supply of movies and games, as the company still tries to run a business alongside the bankruptcy proceedings.[BANNER]

The court approved Blockbuster to draw $25 million from the $125 million loan basket. Discussion on the remainder of the offered loan will be continued in October when another court session takes place.

The entertainment business saw it’s peek in 2003 and seized growing afterwards. Wide discussions are taking place as one of the largest and best known movie rental business is about to step down. Arguably brought into submission by main competitors – Netflix, Inc. (NASDAQ:NFLX) and Coinstar, Inc. (NASDAQ:CSTR), the giant network of stores does not appear ready to liquidate their brick and mortar centers, even though going into the virtual business would be the easiest way around.

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Blockbuster, Inc (PINK:BLOKA) (PINK:BLOKB) Unsurprisingly Files For Bankruptcy

StockFrontRunners — Fri, 24 Sep 2010 15:54:55 +0000

Ten years ago, no one would have believed that this is happening with Blockbuster, Inc (PINK:BLOKA) (PINK:BLOKB). Once the biggest player on the movie rental scene in the USA, it got reduced to a bankrupted pinkie.[BANNER]

Since the filing, share price logically plummeted even more to $0.04, losing over 30% in the past few days. Some investors, however remain optimistic, believing that someone would acquire Blockbuster and put it back on its feet. But whoever takes that chance, they’ll end up having to build the company anew:

Blockbuster’s backwardness was pretty obvious for a while now to almost everyone except its overpaid executive team. But they’ve surely secured their savings/retirement funds, while running down the ones of their investors.

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Slippery Slope Downhill for Blockbuster

StockFrontRunners — Mon, 01 Mar 2010 07:33:25 +0000

2009 and 2010 have been rough years for many business, one in particularly is the video-store rental giant, Blockbuster (BBI). Blockbuster once dominated the video rental world yet now they are being build out by its main competitors Netflix (NFLX) and Redbox. With prospects continuing to weaken for Blockbuster I doubt there is little the company can salvage or do to save face. Lets listen to the bad news first. US stores sales fell 16% and revenue dipped 18% in the fourth quarter. The company is in great amount of debt and continues to lose money. Their reaction, closing down the 500 weakest stores, which is supposedly supposed to reduce expense by roughly $200 million a year. Adding to this they have cut huge amounts of staff and slashed advertising costs. The company now is trying to move in a direction of digital downloads and vending kiosks though I think it’s too late. Netflix and Redbox beat them to the bunch and already own the market share. That’s why I believe it will be near impossible for Blockbuster to ever become profitable again. Maybe the best call is a merger with these new market-leaders until then it will be a slippery slope down for Blockbuster

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Slippery Slope Downhill for Blockbuster