Blockbuster, Inc. (BBI) Message Board

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Non-Tech : Blockbuster, Inc. (BBI)

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To: CFA who started this subject	6/24/2004 4:13:51 PM
From: CFA	of 1

Seems like a good time to buy: (1) Great brand name. (2) Trading at multi-year low. (3) Dividend yield that's equal to a money-market rate. (4) No debt, great cash flow, and freedom from Viacom should provide BBI with lots of flexibility to experiment with new product offerings. (5) Overly pessimistic environment regarding future growth. With recently introduced initiatives such as MoviePass and GamePass, as well as with a soon-to-be-released online product offering, I think that BBI will do better than expected. Not only will there be no reason for users to switch to NFLX, but I also think that these subscription programs will cause the overall rental pie/market to increase as the price of renting movies decreases. Although I've already purchased a little, I'm hoping that BBI will continue lower so that I can average into a much more substantial position. Over the next 18 months, I think that I'll have opportunities to sell BBI at around 20 (pre-$5-dividend) once these new initiatives take hold.

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