john, i liked your post on the NOK thread (your investment style on the surface seems similar to mine), and I'm wondering whether you have an opinion on Blockbuster (BBI).
BBI at $7 seems to offer the same great risk/reward trade-off as Intel at $13, Time Warner sub-10, and NOK at $11. BBI's got a good brand name, great cash flow (generates over $1 Billion in FCF annually with a market cap of only $1.3 Billion), no debt, and is trading at a multi-year low. More importantly, Blockbuster has become very nimble and has launched a number of new initiatives that I believe will turn things around.
Any thoughts?
Full disclosure: I already own BBI and increased my position this afternoon (by purchasing VIAB, which is offering 5.15 shares of BBI for each share of VIAB, bringing the effective price of BBI to $6.60).
By the way, I focus mainly on larger-cap names with good brand names and good balance sheets that trade at multi-year lows. You seem to be doing the same, at least with your INTC, NOK, and TWX trades. |
