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.
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
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goblets
9/20/2010
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