Blockbuster Inc. (BBI)

All Comments on BBI

  • commenter
    svosavvy
    Aug 28 11:07 PM
    Redbox: New Video Rental Competition for Blockbuster and Netflix [view article]
    oh yeah, long nflx I own a small position about as much as a months groceries, but, I love their service. Imagine that, a company that actually makes customers happy and turns a profit. Reply
  • commenter
    svosavvy
    Aug 28 11:05 PM
    Redbox: New Video Rental Competition for Blockbuster and Netflix [view article]
    How about a profit margin number for bbi instead of revenue. How much profit are they spending keeping up their little strip mall stores. Oh, and earlier in this thread their stores were supposed to be an asset, but, now kiosks are the way? It's one or the other. BTW when I put yet to be released movies in my queue I usually have them the day of the release, so much for your "oldflix" idea. I Like the service so much I cancelled cable. My subscription is also cheaper than bbi's online offer. Reply
  • commenter
    billddrummer
    Aug 28 08:06 PM
    Circuit City Still for Sale - Who'll Buy It? [view article]
    I still think that it's too late to engineer a turnaround. The only value I see in the business is its breakup value if some of the stores are in good locations. Then, there's value in the underlying leases. As we've noted previously, the company leases all but 5 of its stores.

    If shrinking and refocusing to cater to upper income shoppers is part of the turnaround strategy, it may work. (Make 'The City' the new brand, and close the subpar superstores that are draining the company's balance sheet.) Unfortunately, if CC does that, it will probably face higher prices from its major suppliers, because it won't need the same inventory level it does now. Which will further shrink its gross margin.

    If Mr. Marcum is tough enough to make the decisions to close underperforming stores, then the company won't have to sell to a hedge fund to accomplish it. On the other hand, if it's business as usual, forget any return on investment unless you get a breakup fee for your trouble.     Reply
  • commenter
    lilarwin
    Aug 28 03:37 PM
    My Website
    Circuit City Still for Sale - Who'll Buy It? [view article]
    Mr.Bhaskar's comments are rough and tough but it is true that any organisation to become a successful one has to have three Ms on the top.and that is the first M ( Men working in the organisation) is misssing in CC with other two Ms ie machine ( quality product) and market (demand )are upto the highest leval.Mr Marcum should have noted this point. Reply
  • commenter
    lilarwin
    Aug 28 03:27 PM
    My Website
    Circuit City Still for Sale - Who'll Buy It? [view article]
    mmmmzzzmzm Reply
  • commenter
    lilarwin
    Aug 28 03:25 PM
    My Website
    Circuit City Still for Sale - Who'll Buy It? [view article]
    Mr. Bhaskar's comments are rough and tough but has hidden truth that three M's will work in any successful company and the first M ie Men is the missing factor in CC when other two Ms like machines (product with quality) and Market demand are upto the mark.Mr Marcum.should have also noticed this factor.. Reply
  • commenter
    lilarwin
    Aug 27 05:00 PM
    My Website
    Circuit City Still for Sale - Who'll Buy It? [view article]
    Mr.Sullivan, Blockbuster's offer was just the manuplated offer with the help of some moneylaunders and scoundrels in the bootleggars society.If it had come through that would had been the worst moment not in the history of CC but inthe whole American business community.CC is the pioneer co in the retail market (sply in the electronic goods) and has done lot of contribution to the growth and development of the society,given very high returns to the shareholders and I am sure CC will definately come out with good results.Mr.Marcum will have' kick in the back and carrot in front, policy and drive out many inefficient,fat salaried,mentally disabled staff members,close down non profit making outlets and inject heavy dose of insulin in lost energy personnel.and implement the comtemporary business practices like having association with Financial corporations dealing in Credt cards,Insurance and Banking business where CC can hold on their money (Strength of 37000 emplyees,$12 Bn sales and assets and stocks,share holdings worth ** is not a small figure)This is enough Mr.Marcum and go ahead and hit the target. Reply
  • commenter
    VendVision
    Aug 27 04:46 PM
    My Website
    DVD Kiosk Industry: Coinstar/Redbox Seeing Strong Growth [view article]
    Redbox has really paved the way for the DVD rental kiosk industry. It has helped raise awareness for companies like mine VendVision.com who market to individual entrepeneurs.
    Good work RedBox     Reply
  • commenter
    copperbaron
    Aug 27 04:05 PM
    Circuit City: Outlook Is Grimmer Than Ever [view article]
    I agree with the conclusion of Sullivan - this is one of the most hopelessly and cluelessly managed companies of the modern era. The mixture of arrogance and ineptitude in the exec suite rivals that of Ford, or maybe some of the mortgage brokers that buried themselves.

    Best Buy is not great, but they run circles around CC and have for years. I used to comparison-shop the two, but now don't even bother. I buy some stuff online, now more than a few years ago. It is easier and cheaper, and I actually find the level of customer service better through a phone connection than live-and-in-person at BBY or CC. Amazing, but true.

    I have probably spent over $20,000 at BBY over the last 15 years, and less than $1,000 at CC. That tells you something - the price points and selection just aren't there. It reminds me of a K-Mart - cheesy, low class, not where I want to shop.

    I expect CC to be a BK within 6 to 7 months - this Xmas will be brutal; the weaker dollar means higher costs, less traffic, and a poor season for most retailers. The electronics guys may get a break from the sales of digital TVs as analog goes offline, but that's the only goodie in the stocking this year for them, I'm afraid.     Reply
  • commenter
    phil'spal
    Aug 27 02:52 PM
    Circuit City Still for Sale - Who'll Buy It? [view article]
    Sullivan is right. Too much hassle involved with making an offer. Further, there is even more hassle in trying to make something of it once you have it. That leads to the obvious question: "What's left of any value in this company?" Bill is right. Fundamentals stink. Land and lease costs are crushing them, yet they're still talking about opening new stores. Not a logical strategy when the only bright spot in the story seems to be that their website is getting more hits lately. Trying to build market share by spreading yourself thinner is an interesting strategy. Given the pathetic performance over the last several quarters, does anybody know how they're planning to pay their suppliers? More debt? So much for cutting costs, unless interest expense somehow doesnt count. Or is the escape plan already in place where the creditors take the thrashing? It's the worst company in a tough, highly competitive market in a scary economy. With regrets to the few dozen or so remaining loyal customers and irrepresibly optimistic CC investors, there is no redeeming aspect that makes this company appear to be worth salvaging. If Mr. Marcum can turn this one around, he should be knighted, sainted, worshipped and adored for time eternal. But I kinda think that he'll settle for the few million bucks he gets for trying. Reply
  • commenter
    billddrummer
    Aug 26 04:32 PM
    Circuit City Still for Sale - Who'll Buy It? [view article]
    To User 251231,

    Thanks, I appreciate your comments. It's too bad that CC has run aground, and the execs are exchanging chairs. There's a 'superstore' near my office, and the Verizon kiosk routinely has more customers than the rest of the store.

    The location of the store is terrible. It's on the back side of a mall, obscured by a Safeway, TJ Maxx and a big box shoe store. Immediately south is a WMT complex including a Sam's Club with gas pumps (it's jammed, too). Next door to CC is a Sports Authority (the third sporting goods retailer to try that spot--the others went out of business). But the lease on the CC runs for another 12 years, or something ridiculous. Termination costs would be immense.

    I think that's what's happening all over the chain. Poor locations, bad lease terms, low store traffic, poor service.

    And Schoonover still has a job. Amazing.     Reply
  • commenter
    kevincstms
    Aug 26 12:58 PM
    Circuit City Still for Sale - Who'll Buy It? [view article]
    Bill said it correctly. When the vendors stop delivering and the credit dries up CC is toast. I was in a CC store yesterday. It was rather scary to see a "super store" virtually empty at 12 noon on the week prior to school starting. This is a store in Orange County, Calif. that even in a recession has a lot of disposable income. The Staples store next door was packed with customers buying laptops and other expensive items. Not so at CC. I get the feeling that most folks already know that CC is close to bankruptcy and they don't want to have warranty problems if the store is not going to be around much longer. It is sad to see such a once great store chain mismanaged into oblivion. Let us all hope that whoever picks up the pieces afterwards will at least keep the name. Reply
  • commenter
    DVDfan
    Aug 25 02:19 PM
    Redbox: New Video Rental Competition for Blockbuster and Netflix [view article]
    Redbox revenue is estimated to be between $250 to $270 million in 2008. I am not sure where BBI's Kiosks are going to be located, but I suspect it will be able to help reduce the labor cost at each stores where the Kiosks are installed. Again, BBI is going toward the right direction as far as what I can see. Another KIOSK player is DVDPlay ($1.49 per rental night) with just 1,400 kiosks @ Safeway and they are adding 1,800 more. Redbox has more than 8,000 locations. Blockbuster's annual revenue is more than 5 Billions with a "B" !!!

    "Oldtrains" definately either owns NFLX or works for Netflix. How are you supposed to know what to type & search on Netflix if you don't check the new movie releases List from Yahoo or Blockbuster's websites huh? Don't try to lower your intelligence level just to make excuses for NFLX, they are very shameful from hiding the new DVD releases from customers. *I had Netflix for 5 years until I got really fed up by their new website designed to hide the new releases earlier this year. I believe some new subscribers recently gained by Netflix will cancel sooner or later. My HD cable plays free movies in much better reolutions than Roku or internet streaming from Netflix. With the rapid increase in HDTV adaptation, the movie streaming from Netflix will soon become an eye sore (or your brain can automatically adjust to low resolution and still call it "fabulous").

    Motley Fool's articles have been classified as "Noises" from my past investment experience, it is quite annoying but my "Noise Filter" is quite strong now. Just read what the fools/morons wrote about "SIRT" and see how much the stock price ended up after the buy out.     Reply
  • commenter
    jayker
    Aug 25 01:30 PM
    Redbox: New Video Rental Competition for Blockbuster and Netflix [view article]
    The problem with piece above in my mind is not about whether Redbox is a good product or not (in my mind it is, granted all the drawbacks but at around 20% of the cost of a BB rental this is a great impulse purchase). The bigger issue is that the writer thinks that the his discovery has not been discovered by the market. I question Peter Lynch's philosophy in a market that is laregely efficient. Unless one had some inside info on RB's expansion, Coinstar's price has pretty accurately reflected RB's value already. Same argument to shorting BB - its already trading at well below peer companies so its position vis a vis Netflix is factored in. For someone truly SEEKING ALPHA, the above article is all about jumping onto a BETA based gain. His "discovery" is only a year behind - take a look at the CSTR stock chart and the news from the compny. Come up with some better ideas folks and give us some info that is unique. Reply
  • commenter
    billddrummer
    Aug 25 10:14 AM
    Circuit City Still for Sale - Who'll Buy It? [view article]
    I'm in Mr. Sullivan's corner on this one. Book value/share looks good until you factor in the costs for terminating leases at underperforming stores, brand damage done by poor customer service over the past five years, and consistently poor fundamentals (negative FCF, shrinking cash balances, lower gross margins quarter after quarter, operating losses in the 4th quarter).

    All that's left is to have vendors stop supplying product, and the swan song will commence. When the credit line is used up, CC will be done.     Reply

Trading Center


Loading...
Symbols:
Authors:
Quick Links: