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Is Blockbuster done, share price went down 77% in one day to 22 cents - 3/3/2009

Discussion in 'After Hours Lounge (Off Topic)' started by TonyD, Mar 3, 2009.

  1. TonyD

    TonyD Who do we think I am?

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    So while at work today we found out the share price went from 96 cents to 22 cents a share.
    this was after BBV hired a firm to
    "Blockbuster Hires Law Firm to Explore Restructuring"
    Blockbuster Hires Law Firm to Explore Restructuring - WSJ.com

    so is this it.
    Can a business recover from such a drop.

    Now I know there will be those who come
    in here and say good riddance, they stink, I hope they rot in hell, etc.

    well please add something to the conversation besides "they suck."

    Working there doesn't bias me towards them in any way.
    It's just a part time job essentially to appease my wife.

    As a customer I like going into a video store and looking around to pick out a movie to watch.
    With only 1 other video rental place in this area, i'd be
    somewhat sad to see bbv go.
     
  2. Cameron Yee

    Cameron Yee Well-Known Member
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    It would be the end of an era, that's for sure. Nothing on the level of GM going away, but in the home video market, certainly a big deal. Though you could argue the writings been on the wall for some time, it's just one more crazy thing in this current economy.
     
  3. Adam Lenhardt

    Adam Lenhardt Well-Known Member

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    This is the key point, I think. Dropping 77 percent in one day is still unusual, but it's hardly unique in this market.
     
  4. EricW

    EricW Well-Known Member

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    it's certainly ironic to see cinemas having a record year so far, while rentals stores are finally going broke.
     
  5. gene c

    gene c Well-Known Member

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    Guess I better do something with that $10 gift card I have laying around somewhere. It's also indicative of how our lifestyle is changing. Some industries just can't adapt.

    When I worked for Webvan, their stock price dropped from 90 cents to 22 cents three or four times before they called it quites.
     
  6. Kirk Gunn

    Kirk Gunn Well-Known Member

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  7. ThomasC

    ThomasC Well-Known Member

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    Their demise is bound to happen unless they change their business model, but it's probably way too late now. There's Redbox (less overhead), Netflix (which also has online streaming), and legal online video websites (Hulu, etc.).
     
  8. TonyD

    TonyD Who do we think I am?

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    Well there was a slight rebound up to 45 a share.
     
  9. drobbins

    drobbins Well-Known Member

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    I have used BB since they did away with late fees and I built my theater. So far I can not see anything that beats them for my use. About $20 per month for 3 @ a time unlimited rentals and 5 in store trade-ins. So realistically we watch 8-12 movies a month for the same price as buying 1-2 DVDs. As a result we only buy "must have" titles. I tried Netflix streaming and it has a long way to improve before I can watch a movie on my 720 projector. I for one hope BB pulls through.
     
  10. todd s

    todd s Well-Known Member

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    I hardly ever rented. But, started using the Redbox when it came out. It's cheap and convenient.
     
  11. Michael Reuben

    Michael Reuben Well-Known Member

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    Banks aren't the only things getting a "stress" test!
     
  12. gene c

    gene c Well-Known Member

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    And I bet there's more to come.
     
  13. Michael Reuben

    Michael Reuben Well-Known Member

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    I'm sure you're right. According to an analysis by the chief economist at Business Week, nearly all of the domestic corporate profit growth for the decade 1997-2007 came from the financial sector. If that analysis is correct, then the rest of our business is in pretty poor shape.
     
  14. Holadem

    Holadem Well-Known Member

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    It is? In one day? Unless you are using "unique" in its strict meaning, I would think that would be an extremely rare occurence, no?

    --
    H
     
  15. Todd Hochard

    Todd Hochard Well-Known Member

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    Well, whoever got in at .22 had a great day.[​IMG]

    I just recently signed up for Netflix, just 7 years after considering it the first time.[​IMG] I like it better than BB. I haven't tried the streaming yet, but I don't have a PC hooked up to the projector, anyway.
     
  16. Todd Hochard

    Todd Hochard Well-Known Member

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    You mean profit growth, correct?

    Bad shape indeed, since all that financial profit appears to be "fake."[​IMG]
     
  17. Michael Reuben

    Michael Reuben Well-Known Member

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    Did I drop a word? Argh, apparently so. [​IMG] Fixed.

    You see? The news is so depressing I can't even manage a complex sentence accurately.
     
  18. Stan

    Stan Premium
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    Not a good sign.

    Don't follow the stock, but I believe they're on the NYSE. Once they're below $1.00 for six months, they can be delisted. They've essentially become a penny stock.

    They lose credibility, trust, it's harder for the company to get credit, etc. It's considered pretty disgraceful to be delisted.

    They may not necessarily end up bankrupt, but it's usually the beginning of the end.
     
  19. Adam Lenhardt

    Adam Lenhardt Well-Known Member

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    There are 2,773 listings on the New York Stock Exchange, and another 3,200 on the NASDAQ. If one out of every 60,000 stocks lost 77 percent of its value on a given day, it would still happen every two weeks or so. When you consider that the Dow has halved in value in less than two years and has been prone to wild fluctuations, you're in a climate where rapid sell-offs are more likely, albeit still very unlikely. When you further consider that Blockbuster is trading at less than $1, wild percentage fluctuations become more likely still. If the stock loses half its value tomorrow, it'll still have only lost ~$0.24 a share. If a company like GE (which has been hit pretty hard recently, too) lost $0.24 a share, it'd be off less than 4 percent.
     
  20. Ron-P

    Ron-P Well-Known Member

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    I hope their not done. I just canceled my Netflix and signed on with Blockbuster. Netflix can't seem to get movies to me, all my queue says is "long wait" or "very long wait", I got tired of waiting.
     

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