Just a couple months ago Blockbuster (Symbol: BBI) looked to be on the way up. In fact, it did climb. But, the bottom fell out and it dipped down into the $3 arena.
Many investors have left for greener pastures, but one is taking advantage of the newfound value.
Not one to pass up a deal, evidently, billionaire investor extraordinaire Carl Icahn has increased his stake in Blockbuster. Could we see a stock price spike shortly?
In Monday’s action, Blockbuster climbed up to $4.11, but fell to close at $3.88.
Icahn bought 1.67 million shares of Blockbuster at $3.72—value of the transaction is about $6.15 million.
Blockbuster is in a bitter battle with Netflix and the two companies will continue to fight for some time. Its stock is currently about 47% off the 52-week high of $7.30. For some investors, like Icahn, this is a time to buy.
Incan’s stake in Blockbuster is now at about 24%. He now holds 26.2 million Class A and Class B shares.
My name is Jason A. Martin. I'm an investor/trader, financial writer and entrepreneur. This is my blog. I also run a social media integration & cross-media design company. If you'd like to follow me on twitter, here's the link: Jason A. Martin
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My name is Jason A. Martin and this is my investment blog. Back in Jr. High School I fell in love with an electrical wiring company's stock on Wall Street. After following the stock daily in the papers—the Internet wasn't around back then—I sent them a letter and they sent me back all sorts of wonderful information about their company.
In High School, we had a stock market contest. All the kids were picking companies that made stuff they consumed. When I announced my beloved company, I was laughed at. Little did they know that my company was going to be the subject of a takeover soon.
Long story short, I won the contest and have made money in the stock market, through real estate investing, currency trading and so forth.
I hope you enjoy Financial Rebel. If you do, please leave your comments and share this site with those you know.
Jason
4 Comments
I think that was a stupid move for Icahn to buy those shares of stocks. I believe blockbuster is a dying company unless it goes internet completely or adds something to its entourage.
Thanks,
Allen Johnson
http://livelymoney.blogspot.com/
Allen Johnson
11/26/2007
I think it has to innovate to continue competing in the market…
Pierluigi Rotundo
Pierluigi Rotundo
12/3/2007
However they may have found some sinergies with their company…
Pierluigi Rotundo
Pierluigi Rotundo
12/16/2007
I have been on your site a few times and I always leave with a gem. I only thought it fair to deposit my comment as a way of showing appreciation. I frankly think you know what you are talking about. Out of your passion, you have become an authority on blogging. Congratulations.
goblets
9/20/2010
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