Amit Chokshi_

Blockbuster Offers Big Upside Potential

Why do you figure the worst is behind them? I love a contrarian play as much as the next person but in BBI's case, do you think it's just an issue of reducing store count and streamlining working capital to milk the business for cash? That might have worked for Autozone and some other retailers where there's not really a technology wall against them but I think BBI and MOVI are value traps.

VOD is going to continue to grow, so as a viewer you can pay $2-$4 to get a movie into your home rather than go to BBI and pay the $5 and have to worry about returning it. I just think the business model is under too much pressure. Plus from just a simple valuation metric rundown, according to Yahoo Finance the stock is trading at 15.0x fwd earnings, 5.9x EV/EBITDA, and 1.3x book. In this market that seems fair to expensive for a company that's in the type of long-term trouble BBI is in.

How much upside do you think BBI offers in terms of share price?