Blockbuster (
BLOAQ) jumped over 70% today, even being in the 80% range for a little while, closing at $0.34 a share today. I own the stock in my fund so you can imaging the nice boost it gave my portfolio. It's just a 'fun stock' to own since I usually don't buy penny stocks. Blockbuster is on the rise thanks to the announcement that Dish Network will be streaming their service. Now Netflix (
NFLX) has some competition it seems like - and Netflix trades around $127. Of course they are two totally different companies but they operate in the same sector. Fair to set a same price target? Besides that many people left Netflix since their recent price hike. Are people turning to Blockbuster? Whatever the case is, the stock traded around $0.04 cents a share a few months ago, now that's a nice price jump. Unfortunately I got in at $0.20 a share back in the day but I'm glad I held on to it for a nice gain so far. The question always is; should we buy or sell this stock?
Take a look at the chart below:
Notice the huge trading volume? Blockbuster is hot! To me, I think it's still a bargain. However, penny stocks are cheap for a reason. After all Blockbuster did file bankruptcy. With a huge spike like this it's hard to set a target point. I'm still holding tight and see where this is heading. Ultimately its price is determined on how well Blockbuster does with Dish Network (DISH) and is depended on Dish Networks customers. Calculated with everything in mind I see Blockbuster heading towards $1 a share by the end of next month (if not higher), if you own Blockbuster like me; hold on tight!
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John, you thoughts in the SEC Freezing this stock and what do you think is going to happen to it?
ReplyDeleteI think the SEC freezing BLOAQ is completely and utterly ridiculous! If they deem the pink slip worthless why did they let traders continue to trade it until the stock surged?!! Let the markets decide what Blockbuster is worth! Once again it's been taken over by rules and regulation that make absolutely no sense. Where were these people before the housing bubble popped? I own the stock but there is not much I can do, can't even sell it even if I wanted to. This is a strange situation I've never been in before... a great learning experience that is for sure :)
ReplyDeleteI think (I hope) the SEC will come to their senses and let the market decide whether or not the stock is worthless.