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Re: MJAM2020 post# 3326

Friday, 05/14/2010 9:54:14 AM

Friday, May 14, 2010 9:54:14 AM

Post# of 6674
Bond prices headed lower, yields up, not looking good.

Last Bond Trade 1M @ $18.00 120.277%

The cash burn from 188M Free Cash to 109M Free Cash since last Q is what is killing this stock.

Blockbuster intends to close ~ 1000 more stores in the next year. Every time a store closes, the numbers get hit with a big impairment charge. Things do not bode well for the upcoming quarters.

At this rate, bankruptcy (or a massive debt to equity swap) is a REAL possibility, imo.

Source: http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=MDkzNjc5QUMy