More good news has come out, Movie Gallery is closing all of it's stores and this will rake in more customers for BBI. This company is definately going to turn around, I'm going to come back to this very thread in about 6 months and let you guys know the profits I've made.
Is BBI the next SIRI?
- Thread starter PolymathMind
- Start date
*Edit to my above post
That's if I make profit, not saying I'm guaranteed to make profit, I don't want the stock to plummet and I look like an idiot.
That's if I make profit, not saying I'm guaranteed to make profit, I don't want the stock to plummet and I look like an idiot.
Well, don't go large on it. I'm only betting 1% of my capital. I'm waiting for the stock to fall the the 10 week lows. I'm hedging the bet too. The pay off could be 10% to my total portfolio. It's a good bet. But, there is a high likelihood they eventually file Ch.11, which I think they should do anyways. Ch.11 would wipe out their debt, drastically increase their EBIDTA, and give them legroom to expand.
Translation of above text:
"If BBI goes up or down, then I won't appear wrong to the unknown masses on this message board. In any event, I will take a profit."
Look...instead of telling us it can either go up or down put your foot forward and make a solid call OR if you don't really know then just say "hey, I don't know". Stop treating us like idiots by spoonfeading this bullshit to us.
So either make a solid call or simply say you really don't know. However, don't hedge your speech with the classic "it can go either way" bullshit. We hear enough of that on CNBC. Remember, we were not just put on messageboards yesterday. We know about all the bullshit you can spoonfead to us here.
BBI has been downtrending since September of last year while the rest of the market has pushed higher. At this point, trading BBI is just like trading an option that can expire worthless...but who knows when BBI will expire worthless. Tomorrow they could easily come out with a press release announcing bankruptcy.
My call is that BBI will go to zero. SIRI is a completely different stock and to compare them together is idiocy. SIRI has been uptrending since last year while BBI is in an obvious downtrend.
So in a word then, your opinion is BBI = fail
Is that correct?
The nice thing about this stock/company is that in the next 45 days or so, they are releasing earnings and the end result of their debt recap negotiations. So this will be one case where most likely we get a turning point and the stock price moves on actual fundamental developments, as opposed to past/historical technical trends.
Whats interesting about Sirius though, from a technical stand point and if you factor much into what the "market prices in," on the verge of collapse the common stock was trading single digit and their corp sub notes were trading for 15 cents on the dollar. That is pretty much as bleak as it gets. Not to mention the fact they were in a $4B hole.
So point is, not necessarily to say going from the conclusion that because it happened to Sirius, it will happen to Blockbuster. But maybe if you look at what happened to Sirius, one could say that anything in the market is possible.
Blockbuster still is a multi-billion dollar annual revenue company. There have been a whole bunch of recent game changing events as well which will drive corp costs down, dramatically improve cash flow, and bump revenues. Now we just have to see whats in store for their two pieces of debt ($675M secured & $300M sub notes.)
DeltaSpread, I'm curious, how big of a stake if any are you holding in BBI? A stop loss wouldn't help with BBI if I'm correct as the stock will drop too fast if in fact the 11 happens?
I have a significant stake in their debt. I am not going to disclose the amount because for one I am a little superstitious about that sort of thing and second you would not believe me if I told you anyways.
But you are correct regarding the common stock, a stop loss is not going to do you much good here as this unfolds. There are two huge corp events coming up. Earnings release next week in after hours and then in June, the press releases with respect to the debt recap negotiations at the annual shareholders meetings.
Of course there could always be a wild card unforseen press release of either good or bad news as well. You just never know whats coming really.
Delta, you think the stock is going to plummet or move up after the earnings announcement?
BBI took a loss today at .37
BBI took a loss today at .37