BLOCKBUSTER (BBI) - GIANT video specialty chain

STOCKTALK

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Non-Tech
BLOCKBUSTER (BBI) - GIANT video specialty chain

An SI Board Since July 1999

Posts	SubjectMarks	Bans
67	0	0

Emcee: Walter Morton	Type: Unmoderated

Introduction Compact

This is great (IPO).

Blockbuster is no longer hidden behind Viacom. Now, we get to see how well Blockbuster is really managed. Once they start revealing their special deals, their amortization methods, etc. in their 10-K things will become very interesting. There could be lawsuits even new accounting pronouncements on inventory amortization of video inventory.

If you have ever looked at the other publicly traded video specialty chains, you will know that this industry makes a lot of cash and almost no profit (less than 5%) and many are operating at a lost (see below). I'm sure that doesn't make the IRS happy.

So, for me it is interesting. I have never bought a stock because of how much cash it is able to accumulate. I usually look at net income. What about you?

With all of that cash the video specialty chains could invest it other companies and become diverse, but that is not happening. Okay, Hollywood Entertainment is diversifying a little. However, the trend has been to buy up smaller video store chains, make more cash, and avoid taxes by not investing in more profitable businesses.

Right now these are the other publicly traded Video Specialty Chains:

Hollywood Entertainment (HLYW)
Movie Gallery Inc. (MOVI)
Video City, Inc. (VDCT)
Video Update, Inc. (VUPD, VUPDA)
West Coast Entertainment (WCEC)
Blowout Entertainment,Inc (BLWT, BLWTQ)

This is a Major Player in the Video Industry:

Rentrak Corporation (RENT)

This company is constantly suing the video specialty chains and video stores owners. There are other major players in the industry that we will talk about in the near future.

I spent six months analyzing this market and I look forward to interesting discussions with you about Blockbuster and the industry.

In the next few months we will discuss anything from Rentrak to buy-back prgrams to studio programs to SuperComm to DVD to e-tailing.

I will introduce you to informative web sites and links so that you may do your own DD. And by all means, feel free to take over the discussion/conversation and teach me something about the industry and Blockbuster. I may have a headstart, but I don't know everything.

Good luck with your investment decision.

Walter Morton

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
67	Regent beats BBI to the punch: biz.yahoo.com	Walter Morton	-	10/30/2000
66	Webcast of Earnings Conference corporate-ir.net	Walter Morton	-	10/23/2000
65	BBI & ITRU -- BBI is making all the right moves biz.yahoo.com	Walter Morton	-	10/18/2000
64	A lot of work is going on every day with VDCT in its effort to take over West Co	mivicap	-	8/9/2000
63	MOVI has proved me right again.	Walter Morton	-	8/9/2000
62	Thank you for the info. It doesn't change my feeling that VDCT will merge We	mivicap	-	8/8/2000
61	Enron Broadband, Blockbuster To Deliver Entertainment-on-Demand Broadband deliv	Walter Morton	-	7/19/2000
60	Interview with CEO biz.yahoo.com Cash Earnings is the way to evaluate video s	Walter Morton	-	4/19/2000
59	Now, BBI has a plan and possible a future: biz.yahoo.com	Walter Morton	-	1/29/2000
58	Before you can answer that question, I think you need to see how other companie	Walter Morton	-	1/17/2000
57	Hello, Why is this stock trading so cheap as compared to the book-value?	mogo	-	1/17/2000
56	Is any of this true? Message 12550651	Walter Morton	-	1/12/2000
55	BLOCKBUSTER.com watch out: Message 12173152	Walter Morton	-	12/2/1999
54	"There has been a lot of talk in the industry about video-on-demand and th	Walter Morton	-	12/1/1999
53	My question was, is BBI a stock that you could hold on to until 2010 not 2001?	Walter Morton	-	11/11/1999
52	Hi Walter: As you see BBI announced a deal today to provide videos. This is	BIGFRED	-	11/11/1999
51	There is no guarantee that existing shareholders of Blockbuster will get shares	Walter Morton	-	11/9/1999
50	What will Blockbuster.com do that HLYW's Reel.com doesn't do? Okay, it	Walter Morton	-	11/8/1999
49	Hi Eric: That was a shot in the arm that AOL will invest 30 millions in BB	BIGFRED	-	11/4/1999
48	AOL! We got the big ticket! 15-20? Im lookin for 30-50 now! Ya never know!	Eric W. Richesin	-	11/4/1999
47	Hi Walter: I am still holding for better days which I think will be December	BIGFRED	-	10/28/1999
46	CBSMW: Blockbuster is going on the Internet. You've said before that video	Walter Morton	-	10/27/1999
45	I was just talking about this with somebody in Private Mail: The Future: dail	Walter Morton	-	10/21/1999
44	Yeah, but the analysts seems to be more impressed impressed with BBI's comp	Walter Morton	-	9/27/1999
43	biz.yahoo.com WOW!. Is this unreal or what? the EPS for BBI is 72 cents this ye	BIGFRED	-	9/26/1999

Go to reply# or date (mm/dd/yy):