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So, can someone explain for me what the heck is going on at Movie Gallery (MOVI)?

Shares of the video store chain - the second-biggest after Blockbuster (BBI) - are up 45 cents today at $3.51, a gain of nearly 15%. The stock today is up for the fifth day in a row, a period in which it has gained 26%; since November 1, the stock is up 61%.

The bulletin boards have some vague postings theorizing that the company will hook up with Netflix (NASDAQ:NFLX), but nothing that at all seems reliable.

The last substantial news on the company was that they had received a warning from Nasdaq that they were in danger of being delisted. (The problem: delayed financial filings due to a review of the company’s accounting treatment for end-of-term store lease obligations.)

Anyone have a theory?

(It’s not news, but I did discover in trying to finding out what might be going on that the company is the sponsor of the home field of of the Troy University Trojans: Movie Gallery Veterans Stadium. Any Movie Gallery veterans who have an idea about what’s going on, please pass it along.)

MOVI 10-day chart:


Source: Movie Gallery: What The Heck's Going On?