[Published February 10, 2011]
Today, Blockbuster announced the intent to put itself up for auction, after bondholders were in disagreement about continued financing.
Carl Icahn finds himself once again in the midst of a rush to sweep up the crumbs from a company he had a large part in destroying, this time through negligence.
I have discussed the demise of Blockbuster a few times in the past, beginning with an article I wrote several years ago. I even provided a trading and fundamental analysis of the company in the Wall Street Investment Bible.
I also wrote about the Netflix-Blockbuster long-short trade two years ago.
I followed this up with another article a few months later.
If investors had acted on my analysis, they would have not only avoided holding a stock that would later file for bankruptcy protection, they would have also made huge gains through the long-short strategy I recommended using Netflix and Blockbuster.
This adds to long list of examples I have documented that demonstrate why it’s so important to align yourself with resources and individuals that can add to your investment insight and skills.
If you are not aligned with these resources, you stand a very poor chance of doing well as an investor. Those who fail to realize this by now, you probably never will.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.