Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Is Blockbuster a Wrap?

By

Strengthen your portfolio in good times and bad.

PrintPRINT

Shares of Blockbuster (BBI) plunged at midday after it was reported the world's largest movie-rental chain hired a bankruptcy firm to explore its options.

The Dallas-based Blockbuster, with over 7500 stores worldwide, has retained Kirkland & Ellis LLP to review a number of restructuring options, which could include filling for "pre-packaged" or "pre-arranged bankruptcy." According to Bloomberg, these types of filings are more advanced because outcomes depend on agreements from creditors.

Last November, executives said the company faced challenges refinancing its debt. Blockbuster has also had trouble reinventing itself given the consumer switch to online downloads and mail-in movie services.

Blockbuster shares plunged 77% in today's session.

From the Bull Pen: The bad news for Blockbuster today caused a short squeeze in Netflix (NFLX). Bulls can continue to play Neftlix; a sell stop can be set below $34.

From the Bear Cave: Another company facing a tough turnaround is DISH Network (DISH). See the stock closing below $10 support. Remember to set your buy stop.

See you all at Minyanville Karaoke. Goodnight!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE