Why BBI:NYSE ($1.13) will be a 10 bagger from here:
1) BBI was priced for insolvency, but LIQUIDITY ISSUES HAVE NOW BEEN RESOLVED. August transactions increasing liquidity by $95 million. BBI now has $200 Million unrestricted cash.
2) $300 Million EBITDA for 2009. If BBI traded at standard 12 X EBITDA it would be $15.
3) BBI has huge International assets that it plans to sell to become DEBT FREE.
4) Comparative valuations: BBI has market cap of $200 MM vs. $2.5 Billion for Netflix.
Here is a great summary post:
I mean seriously though ... do you actually think we will be hovering around the $1-$2 range in the next few months? This is the buying opportunity of a lifetime.
-Blockbuster WILL pay of their debt.
-Blockbuster will have over 10,000 Kiosks in play by the end of 2010 .. with tens of thousands more to come ...
-Blockbusters Kiosks will have hundreds .. yes HUNDREDS mored dvds than any other brand Kiosks.
-Blockbuster will sell a FEW yes ... FEW more International sites for Millions and Millions.
I could go on forever, but just remember this.
days like today will be nothing compared to the gains we are about to see in the next few months. If you don't have faith, then just buy when we hit $3 ... because after that .... it will be 7 next .... then hover around 10 for months and months.
Blockbuster is WAY Undervalued ... way to obvious. Once Blockbuster pays off their debt, which they easily will now, they will be no doubt at all they will emerge to be one of the greatest stories of this past year and a half.
They are truly changing their business at an unbelievable fast-paced rate. They may have gotten into it late, but RedBox and NetFlex will be nothing compared to what Blockbuster is about to become.
I said it at.82 ... and I'll say it again. Don't think of the OLD Blockbuster ... Think of Blockbuster as a new business. Blockbuster is about to change the ENTIRE GAME ...
Just sit back and relax ... go long ... and in a few months you will be very happy. Blockbuster is on the verge of greatness and a wonderful comeback story. yes... I'll say it again .... The Entire Industry is about to change and is changing as we speak, but Blockbuster is on it's
