Worst Stock for 2009: Blockbuster

Which 10 companies should you keep out of your portfolio? Find out in our special series on the Worst Stocks for 2009.

When economists in years hence write the history books, I believe that they'll mark 2009 as the year Blockbuster (NYSE: BBI  ) went bust.

???!!
You heard me right. This Fool just went out on a limb and predicted that Blockbuster is going to zero. Which will, in the spirit of this series, make it the worst-performing stock of 2009.

Retailer regrets
Our economy is in crisis, Fools. No great news there. Apple (Nasdaq: AAPL  ) just reported flat earnings. Starbucks (Nasdaq: SBUX  ) and Bed Bath & Beyond (Nasdaq: BBBY  ) have both reported profit declines four quarters in a row; Home Depot (NYSE: HD  ) and Lowe's (NYSE: LOW  ) have done likewise, and for longer. Everywhere you look, our consumer-driven economy is falling apart, and retailers have taken the brunt of the damage.

Which brings us to Blockbuster. At first glance, you might think BB's the king of the retail space; in each of the past four quarters, it's reported better numbers than in the previous year's analog. Lower losses when it loses, higher profits when it wins. But I submit to you that this analysis misses the point.

By the numbers? No. Sell these numbers
In the big picture, Blockbuster is a mess. This video purveyor has lost money in seven of the last 10 quarters -- a combined loss of $1.15 per share, or nearly as much as the shares are currently worth. Over that same timespan, the company has not generated a penny's worth of cash profit. To the contrary, it's burned through some $130 million in cash, shrinking the size of its bank account to just $95 million. Worse still, things are getting ... well, worse. More than half of that cash burn has taken place since last January.

As a result, despite Blockbuster's heroic efforts to pay down its debt, its balance sheet still looks incredibly lopsided. Opposite a tiny pile of cash, the company remains $615 million in the hole for long-term debt, and it's issued preferred stock essentially amounting to an additional $150 million in long-term obligations -- $765 million in total, or more than eight times its cash on hand.

2009: The year things really got bad
As our economy slouches toward Gomorrah, interest rates have tumbled into the cellar. Even so, Blockbuster currently has to divert half of its operating profit just to pay off its creditors. And things could go from bad to worse this year. As I look at Blockbuster's balance sheet, I see $200 million in long-term debt coming due this year, and I ask myself: What will Blockbuster pay it with?

As I already mentioned, the company's got less than $100 million in cash on hand. Accounts receivable amount to even less than that. Combined, these short-term assets don't add up to sufficient cash to pay the piper. It seems to me that Blockbuster will have to roll over a big chunk of debt this year -- and if you haven't noticed, banks aren't particularly eager to lend hundred-million-dollar sums right now. Which leads me to believe that Blockbuster is facing a liquidity crisis.

Don't look now, but ...
One final point before I close. Good sportsmanship suggests that it's not nice to kick a guy when he's down. Good corporate stewardship, in contrast, tells us that this is in fact the safest time to kick him. That brings us from Blockbuster to archrival Netflix (Nasdaq: NFLX  ) , which yesterday reported an utterly stunning fourth-quarter profit.

Blockbuster stumbles into this Year of the Greater Depression bearing a balance sheet loaded with too much debt, not enough cash, and negative free cash flow that adds to the former as it depletes the latter. Meanwhile, Blockbuster's most ardent foe stands poised on a hillock of nearly $300 million in cash and short-term investments, with no debt to speak of.

Now, I don't pretend to read Netflix CEO Reed Hastings' mind. I don't know whether he'd like to own the DVDs-by-mail space, or if he really believes that keeping Blockbuster in the race helps to validate the concept. In short, I don't know whether he will cut his company's prices so low as to make his rival's business model unviable, and finish off the undead zombie I see in Blockbuster.

I am convinced, however, that if Netflix is sufficiently ruthless, this is the year to do it.

If you agree that Blockbuster is the worst stock for 2009, then leave a comment below that rates Blockbuster an "underperform." Or feel free to bet against me and leave a positive comment below.

Home Depot and Bed Bath & Beyond are Motley Fool Inside Value recommendations. Starbucks, Netflix, Bed Bath & Beyond, and Apple are Motley Fool Stock Advisor selections. The Fool owns shares of Starbucks and Bed Bath & Beyond.

Fool contributor Rich Smith does not own shares of any company named above. You can find Rich on CAPS, publicly pontificating under the handle TMFDitty, where he's currently ranked No. 701 out of more than 125,000 members. The Fool has a disclosure policy.


Read/Post Comments (32) | Recommend This Article (19)

Comments from our Foolish Readers

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  • Report this Comment On January 28, 2009, at 3:13 PM, Stolio wrote:

    I would just like to say that everytime there is an article on Motley Fools, they are DEAD wrong about everything. BBI will prevail in 2009, my projection is 3-4 per share once the economy starts turning around in the 2nd half.

  • Report this Comment On January 28, 2009, at 3:34 PM, esymoni wrote:

    Fools have their head up NFLX butt. They don't mention the changing business model, the fact that the small mom and pops are dropping out, that BBI has a 1/3 of the online users of NFLS and can grow the segment , but elect not to. BBI has the total access program which is head and shoulders better than NFLX.

    BBI is renegotiating about 1/3 of the leases in 09 with better lease terms and lower cost. BBI revolver can continue to be paid out f cash flow if elected. BBI has paid down over500 million in long term debt in the last 3 years.

    He forgets to mention all this. Get your head out of NFLX butt and realize the BBI retail total media plan will work and pay huge dividends to those who get in on the cheap.

    For the NFLX owners, it is priced for perfection, any misses and NFLX looses 50% of the value in a matter of a week.

  • Report this Comment On January 28, 2009, at 3:40 PM, VHunter2008 wrote:

    Rich, I hope this pick is better than your article from Dec 31, 2007 "Best Stock for 2008: Garmin" ;-)

  • Report this Comment On January 28, 2009, at 3:54 PM, esymoni wrote:

    GRMN down only 75% last year. Jump on his next big blunder NFLX. Buy it now and just loose you money later based on last years best picks.

    Just think, they get paid to spout their BS.

  • Report this Comment On January 28, 2009, at 4:07 PM, spectruman wrote:

    I do not agree, Blockbuster is still a major player in this new media age. While at the same time as operating there stores with rentals and sales, they are operating there online and currently involved with partenerships which leads me to believe that they will remain a major competitor in this media age. Despite the debts, they are taking major steps in the competition and it's up in the air as to the outcome. It's to soon to determine this prediction. I think by the third quarter you will see Blockbuster catching up and Netflix a little crippled. We shall see...

  • Report this Comment On January 28, 2009, at 4:36 PM, coordinador wrote:

    Everyone can spek, bat figures are figures. We are going to see next financial statments which are going to come with net income equivalent to over than 0.20 EPS in 4Q. It means price earning less than 2 years. What you think about??

  • Report this Comment On January 28, 2009, at 4:48 PM, stockstacker wrote:

    seems to me that fools are making themselves look foolish with such an obvious agenda..

  • Report this Comment On January 28, 2009, at 6:08 PM, FogKing wrote:

    People are cutting-back on all superfluous leisure expenditures such as dining out, theaters, plays, concerts, etc. One thing on which people are still spending is entertainment at home, and BBI is still a powerhouse. Their stores are always filled whenever I go, and they're finding more ways to increase revenue - even beyond the monthly fees I pay. I think BBI's a keeper, and a player in the future!

  • Report this Comment On January 28, 2009, at 9:13 PM, milonicjams wrote:

    this article is so poorly researched and written that it smacks of fraud. BBI made money (read: net profit) in each of the worst two quarters (3&4) of the worst FY thusfar in most of our lifetimes. As well, their business model is also being proven by netflix and itunes (video side). Even still, as they close weak performing brick&mortar stores...guess what, they own many of those buildings and thus receive capital influx to invest in their digital services. I think their strategy of tie-ing up both MovieLink and CinemaNow is solid. Unlike Apple/iTunes, their technology base is very open. The only competitive disadvantage I see are their lack of an "all you can download" subscription model and the negative press from unscrupulous Fools like the article's author. It's way too early in the market cycle for a "battle-to-the-death" between the big 3 (Netflix, iTunes & Blockbuster)... the market shakeout for this industry is still years away.

  • Report this Comment On January 28, 2009, at 10:14 PM, Geovid wrote:

    Fools have definately been biased in favor of Netflix for quite sometime. However, if you look at the stock price of Blockbuster and Netflix it is apparent that the Fools have been the opposite of foolish.

    They have actually been wise.

    It is unfortunate that the Fools have poored so much "fool's salt" in the wounds of the Blockbuster shareholders at every possible chance, but any Fool would have to admit they have been right. If you listened to the Fools and bought NFLX and shorted BBI a couple of years ago you would have made some serious coin!

  • Report this Comment On January 29, 2009, at 8:45 AM, Scot39 wrote:

    As a long time fundamentals-based investor, I have carefully followed BBI for several years, especially since Jim Keyes became CEO, after being a large investor for many years during the 7-Eleven turnaround.

    The latest BBI information is that the company will have free cash flow of approximately $94 million in the fiscal year 2008. This is using the planned $130 in CapEx. The current CapEx has been reduced by about 50% or $65 million, and without any improvement in operations should generate $159 million in FCF over the coming year.

    Trailing EBITDA is $323 million through the 3rd quarter of 2008. The estimate for 2008 earnings by analysts is $.15/sh. and for 2009 $.35/sh.

    The re-negotiating of the $450 in annual leases will also reduce expenses, especially as almost 50% of these leases come up for renewal every year.

  • Report this Comment On January 29, 2009, at 9:33 AM, thenext44 wrote:

    BBI doesn't currently meet the $100M market cap / $1.50 stock price minimum

    So how could you rate it in CAPS

  • Report this Comment On January 29, 2009, at 1:06 PM, SureShoe wrote:

    Why all the hate on NFLX? Have any of you people followed that stock?

    I particularly like the guy who said "BBI could expand the mail segment, but chose not to." Are you kidding? BBI tried and got their teeth kicked in. The funny part is that BBI did have a better program AT ONE POINT. But, now that NFLX has added streaming, the game is over unless BBI pulls a miracle.

    The other part is that BBI management is plain DUM. Yes, D-U-M. That's how dumb they are, they can't even spell dumb.

    While steeped in debt and losing business, what was BBI's move? Buy another failing company: Circuit City. What a debacle. The minute I heard that, I bought more NFLX because it showed that BBI has absolutely no idea how to compete.

  • Report this Comment On January 29, 2009, at 1:22 PM, SureShoe wrote:

    And as a note, they have their heads up NFLX butt because it's been a great stock.

    If you had put just $1000 in NFLX each time they recommended it, here would be your balances:

    Jun 2003 - $2106 - about a 15% annual return

    Nov 2004 - $2424 - about a 20% annual return

    Jan 2005 - $2880 - about a 30% annual return

    Jul 2006 - $1382 - about a 13% annual return

    Oct 2006 - $1656 - about a 25% annual return

    Jul 2007 - $1896 - about a 50% annual return

    So, if you want to claim the Fools are silly for investing in NFLX, that means you can outperform these returns. And trust me - if you are outperforming 20% annual returns, you are too rich to be posting on a newboard.

  • Report this Comment On January 29, 2009, at 2:02 PM, martinfool wrote:

    I was a longtime Netflix customer and recently switched to BB online. Why? Because I couldn't get the BluRay discs I wanted in a timely fashion from NF. Netflix has forgotten the early adopters who built the company. They have admitted that building a BR library is not a priority. Blockbuster has the BR discs more often than not.

    Disclaimer - I still own NFLX. I am not sure how this is going to play out. Maybe NF will step up, or BB stumble. We'll see. My point is that not all is golden in Flixville.

  • Report this Comment On January 29, 2009, at 2:27 PM, VHunter2008 wrote:

    SureShoe,

    You are a tool... Seriously, where did you get your AA degree, assuming you even got beyond a high school education? Calling BBI's management dumb shows me you either don't care to spend time researching a firm or simply are a TOOL ;-)

    Go back and get your AA degree or at least enroll at Phoenix University...

  • Report this Comment On January 29, 2009, at 3:16 PM, SureShoe wrote:

    NFLX up 3% today.

    BBI down another 8% today.

    Evidentally you know something nobody else seems to know.

    BBI is crumbling in its own debt due to online competitors. What was its solution? Buy more physical stores: Circuit City. Thank god for their share holders that move was blocked - Circuit City has since plummeted to... ZERO. The funny part is they couldn't even get financing to do the deal if the idea hadn't been squashed.

    Their management is horrible and that ridiculous scheme proves it. After that debacle I bought more NFLX knowing they had no competition. That move has paid off.

    BBI's stock in the last 2 years?

    The proofi is in the pudding:

    http://finance.yahoo.com/q/bc?t=2y&s=BBI&l=on&z=...

    But, feel free to insult me because while you lose money with BBI, I have more than doubled mine with NFLX.

    I guess if I owned BBI, I would call people names too =(

  • Report this Comment On January 29, 2009, at 3:46 PM, VHunter2008 wrote:

    SureShoe,

    If history it all what counts, librarians would be the richest people... Similar to Wayne Gretzky who skated to where the puck would be, not where it is, I focus on where they go, not where they have been...

    Surely, you have read that Carl Icahn was willing to backstop the CC deal - so your statement BBI couldn't get financing is incorrect. Secondly, if you would work in the investment/m&a field, you would realize that a firm made a public offer contingent on the result of their dd.

    I have no problem that you are bearish on BBI and bullish on NFLX, but calling people dumb and making up facts, while disregarding positive aspects, makes you seem incompetent...

    Still, what's your educational background? HS, AA, BS or what?

  • Report this Comment On January 29, 2009, at 6:08 PM, dojodan444 wrote:

    I think there is little doubt that Motley Fool writers have shorted or are short-selling BBI considering the relentless bad press they and they alone give it.

  • Report this Comment On January 30, 2009, at 11:08 AM, SureShoe wrote:

    What facts am I making up? Icahn's invovlement hurt BBI and sent NFLX soaring. After Icahn said he would buy CC himself, he bailed on the idea not long after his advisors told him "that's stupid." So while you may feel smart saying Icahn backed the deal, he only backed it long enough for everyone to say "BBI is ran by idiots". By the time he BAILED OUT, BBI shareholders were crushed futher. So son, maybe you should check your facts.

    You were slightly right on one point - history is not an indicator of future success. But, history does reflect the skill of management and BBI management is terrible. Look at their chart. Ask yourself this - what has fundamentally changed about their business to reverse this trend? The answer is NOTHING. In fact, their situation has grown worse because they have failed in the DVD by mail competition. Which is truly mind boggling because they OFFERED A BETTER PROGRAM AT THE TIME. But, they didn't market it correctly. Again, a reflection of bad management.

    Seriously man - stop and think about it. Go to 100 websites and you will be bombarded with NFLX ads. I NEVER see a BBI ad. I mean, how much more common sense do you get? You have to advertise. This is why NFLX posted STELLAR results this quarter and BBI continued to stink the place up.

    Frankly, I was skeptical of Netflix for a long time because I think DVD/Blu Ray is only going to be a serious entertainment player for a few more years. It is NFLX growing strength online that convinces me it is a long-term player.

    I am not bearish on BBI because I'm long on NFLX. I am bearish on BBI because it is simply a terrible company with a failed business model. There is absolutely no way the CC deal made any sense. If you think so, then you don't really understand BBI's problem. Even the BBI management you seem to love eventually realized it was stupid.

    Ask yourself this, because you apparently haven't: What is BBI's problem? Overhead. Have you actually been in a BBI store lately? They're a mess. I visited one when I bought my Blu Ray player because I wanted to get something in hi-def right away. DVDs are littered all over the place, you can barely find what you want. It's a massive pain. Why would ANYONE do this on a regular basis. That my friend is their problem - those stores are a massive, massive liability. The CC deal would have made that situation WORSE.

    Look, I get the appeal of penny stocks. People buy a chunk and if they can get it to go from $1.10 to $1.50, they make some nice money. If you are one of these bottom feeders who want to jump in and out of BBI, then God bless you and I wish you well. But, if anyone thinks 5 years from now that BBI will be around, you're kidding yourself.

    As for my education, does it really matter and are you going to believe me? I have a BS in Systems Analysis from Miami University and an MBA from Xavier University.

    Anyway, I don't know I'm bothering to post. I could care less about BBI. It just irritates me when people say the Fool pumps NFLX. Of course they pump NFLX - because it has been a stellar performer.

  • Report this Comment On January 30, 2009, at 11:17 AM, seamd wrote:

    So is BBI's recent deal with Sonic Solutions for use of CinemaNow a step in the right direction, a day late and a dollar short or irrelevant?

  • Report this Comment On January 30, 2009, at 11:27 AM, edsrouter wrote:

    I really don't want to say NO NO NO to this article, because it makes valid points about Blockbuster's debt.

    However, if we all recall in the Great Depression, what was the huge activity among the people during free time? Going to the movies!! Why? Because it was a cheap date. Simarily, at home movies such as Blockbuster has and will become this cheap date. A majority of their movies are now $0.99 (excluding new releases).

    Secondly, let's not forget about the effect of internet movie piracy and the Obama administration. Obama has some key anti-P2P people in some top positions. Namely Joe Biden and Tom Perrelli (RIAA lawyer appointed to the DOJ). If Obama even utters the word "piracy" expect this stock (and alot of others) to go up. Netflix's business model allows you to watch streaming movies, but pirates like to "keep" movies especially if they can get them or transcode them from a much higher quality source like commercial DVDs or Blu-Ray. Again another unexpected win from Blockbuster. Time is against Blockbuster in this war though.

    Lastly, as far the debt goes we have to look at one of Blockbuster's key directors: Carl Icahn.

    I'm not bullish on this stock though. Blockbuster's set-top box looks on the outside to be a $100 - Pay Per View service, which in my opinion wouldn't be that popular in a recession. Secondly, in light of that, ISPs might be putting the crunch on broadband service by limiting bandwidth. This would put both Blockbuster and Netflix in jeopardy of losing online customers, and Netflix's stock price right now seems to be quite inflated.

    Blockbuster has its problems, but I personally don't see it "dying" in 2009. America's economic disarray will in my opinion help it more than hurt it and keep it afloat.

  • Report this Comment On January 31, 2009, at 2:29 PM, SureShoe wrote:

    Seamd - you are right, Blockbuster is too little too late on a set top box. They have proven incapable of competing with NFLX, and there is no reason to think that would change. And edsrouter also noted - why would people pay $100 for a PPV service when you get streaming from NFLX for free?

    The biggest reason I see BBI dying in this or next year comes off their last quarter and their horrible balance sheet.

    BBI's balance sheet has 1.5 BILLION DOLLARS in questionable "assets". It has over 750 million in "goodwill", which is basically vapor. It also over 750 million in inventory. The value of that inventory is questionable. If you siphon off just a little over half of those questionable assets, BBI is in the hole a billion bucks (ouch). Last quarter they failed to make a profit and had over 200 million in negative cashflow.

    Plain and simple: without a huge lifeline, they cannot survive.

  • Report this Comment On February 02, 2009, at 1:02 PM, Deepfryer wrote:

    VHunter, go spew your crap somewhere else. Sureshoe backed up his opinions with facts, so you respond with personal insults? Real mature. Go troll someplace else if that's all you're good for. And as a reminder, you generally want to invest in companies that are MAKING money, not LOSING money.

    Anyway, I agree that BBI will be one of the worst stocks of 2009 and I would not be surprised if they drop all the way to zero. In fact, I'm going to short it this week, along with Overstock.com and Sears.

  • Report this Comment On February 03, 2009, at 2:07 AM, bbiemployee wrote:

    Ok Folks. I have read the article and all of your comments so how about I give you some details from the inside. I have worked for blockbuster for 6 years. While I obtain my degrees. Now my degrees are in science but, I manage Blockbuster and can tell you that many of you are right. Blockbuster is not doing well. Right now they are shifting inventory store to store on a weekly basis and not because the stores need them. The stores are not as busy as you may think. I went from making $8,000 on a Friday night to making between $750 and $2000 a night. Blockbuster is not doing well. They constantly are floating inventory store to store Why. IT is not selling and it is not renting. Blockbuster has raised their prices so high on their new retail I don't even shop their with my discount. So everyone who believes Blockbuster is going down. You are right. Daily I see my TNR drop to numbers I have never seen in the 6 years I have worked for them. Stores are falling apart and they have put a hold on fixing them. Because there just is no money to do so. They are trying to push their rewards program to up the end store transactions but it's just not working. Blockbuster is a sinking ship.

  • Report this Comment On February 03, 2009, at 8:29 AM, Scot39 wrote:

    One has to have a good sense of humor when reading the posts on this board, as almost all appear to involve attempts by short-term speculators to decrease or increase Blockbuster's share price.

    So back to reality.

    A company that is expanding rapidly finds its need for financing expands rapidly. And the opposite is true for a company in a mature or declining industry. Think of Bandag, a replacement-tire maker in a declining industry, that was a cash cow because it carefully managed its reduction in company assets to match the decline its industry faced.

    One of the keys to Blockbuster's plans to revitalize the company is to reduce the company's assets as the demand for product declines. This will, if done correctly, spin off a lot of cash that can be used to refocus and redefine the company from a DVD store to one that sells "Digital Entertainment"

    A big question is, of course, how fast will the decline in store rental and retail DVD's be. Looking at the latest figures, the decline has been very slow, but it is in decline. If the decline continues generally at the same rate, BBI will be able to generate a "cash flywheel" as CEO Keyes has stated. There is a history of Blockbuster doing well in recessionary times, as people turn to lower/lowest cost entertainment. So, I think there is a good likelihood that BBI will do well in the present financial environment.

    Additionally, as has been mentioned elsewhere, BBI pays $450 m. a year in leases, and the average lease is two and half years, providing BBI the opportunity to renegotiate 40% of their leases every year.

    I can understand those posters on this site who have a very negative view about Blockbuster as the second big question is how long and severe the recession will be. Both will affect the outcome of BBI's plans for transforming the company.

    And the last of the challenges facing Blockbuster (and Netflix) is that I believe there will be industry-transforming new approaches and devices that will force all companies back to the drawing board. In that new playing field all bets will be off, and who knows which companies will survive and which won't?

  • Report this Comment On February 03, 2009, at 4:16 PM, SureShoe wrote:

    Scot39, good points. I'm not sure I agree. I think the BBI store overhead is a big killer - even if they renegotiate leases. Ultimately, I think the problem is their management has proven unable to keep up or show any vision.

    Either way, good luck.

  • Report this Comment On February 12, 2009, at 8:31 PM, edsrouter wrote:

    http://www.theregister.co.uk/2009/02/11/feinstein_stimulus_a...

    See link: Feinstein introduced an anti-copyright internet filtering measure in the stimulus bill. I don't know if it will make it to the final bill or if will be defeated. I think this is good to note. I am extremely bullish on this stock as well as more bullish on other media industries if this can be implemented before BBI goes under. SureShoe can you please comment on this.

  • Report this Comment On February 21, 2009, at 1:08 AM, BBempl wrote:

    bbiemployee, well let me say this, I am a fellow member of the team you must be running one of the stores that I have to pick up the slack for. That drop in TNR is ridiculous and quite frankly you should proabably stick to science because business is not your forte. Having stated that, I will agree that we are shifting inventory and if you have to ask "why" then once again: business is not your forte. The state I work in has hit positive comps for q3 and q4, now although this as it may seem minscule made up 21.8% of TNR for both quaters. Also regarding your 6 years of tenure you would know some key points i.e. reatil's prices have not changed they are for the most part based on what the studio's wholseale prices and as you know movies have gone up in cost (for various reasons) and so will the cost to purchase such goods and BBI makes a smaller profit when selling those goods.

    I will agree with you that certain stores can use and upgrade but thats no excuse for not keeping them clean and organized. It was very unfortunate to hear one comment mentioned above about the store he went to get hi-def movies which was in such terrible shopping conditions, and I can only imagine the wrong ppl are at the helm of that ship. Whether it be BBI or any other brick and motor retailer, keeping your store organized, clean, and customer service oriented is just good business and those who don't do such obviously lack what it takes to run a business.

    For all the rest: you all have valid points about BBI but as with any business' that perform well in unfortunate economic times only time will tell.

  • Report this Comment On February 24, 2009, at 10:48 AM, MrKnowledge wrote:

    Wow. Mutiny. Unbelievable.

    Bbiemployee you are the biggest tool to comment here. Maybe the fact that your polling $750-2000 a night is that you dont have your act together. Try crawling with earthworms or studying rocks, you MIGHT be better at that.

    I also manage a store in Illinois and I have to agree with BBempl. Our stores are hurting. We are not posting positive numbers or positive actives for weeks now. Who is??

    The pains about BBI:

    Negative actives

    Polling negative tnr %

    Jackasses like bbiemployee running stores

    Bad debt

    Horrible budgets

    Being two step behind current tech trends

    The positive about BBI:

    MovieLink

    Total Access Online: Movie and GAME

    Blue Boxes

    .99 Rentals everyday

    Up-to-date Licensed Merchandise

    Consumer electronics

    Constant New Retail markdowns (i.e $5.99)

    Constant PVD markdowns ($3.99)

    Cutting costs > layoffs

    Focus (Blu-Ray expansions)

    54,999 employees working thier #$@ off.

    Now lets remember that BBI did not aquire Circuit City. Who pulled out or what happened who cares. BBI did the smart move as a company and moved on. The company is making a smart move as an employer and as a corporation to FIGHT for these stores staying open by making Blockbuster a "One stop shop for entertainment."

    So will Blockbuster survive?

    Dark Knight releases. LETS BUY IT!!!!

    Babylon A.D releases. LETS RENT IT!!!

    Netflix has one very small advantage.Its new. Give it time and the general public will find a problem and more and more and more. Soon there will be a new fad and NTFX will be out. Lets quit trying to stompdown a good guy that provided more than most a movie or two.

  • Report this Comment On January 27, 2010, at 12:34 PM, afamilyguy wrote:

    I guess your numbers are too much for me to understand at this time. I am a normal family person and i love blockbuster. i have it near my house and my kids love to go there to select movies. i just CANNOT relate with netflix as i dont really see them, and my kids dont relate to the online Q system. call me old fashioned, but i guess most of them are like me ...when the corporate bubble of numbers burst, people will again stick to their local community...i guess it is a cycle.

  • Report this Comment On February 14, 2012, at 9:24 PM, Shadowhippie1122 wrote:

    It's 2012... I'm just taking an interest in stocks and I thought I'd look up the largest failure of a company I could. so I typed "blockbuster stock history" and here it took me. Blockbuster declared bankruptcy and was bought out by Dish Network last year. I may be new at stocks, but I knew Blockbuster was doomed since 2001 and the days of napster. I was shocked to find how much support was on this post. Everybody seemed to have high hopes for blockbuster vs netflicks and forgot the third option: free online downloads. Netflicks is doomed too, it's just a matter of time. But I'm so excited about joining the stock market, since as a 15 year old boy I saw the tumbling of a company when sadly, very few others did...

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