Blockbuster's (BLOAQ) huge momentum, surges over 70%!

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!

Fierce bidding expected on Blockbuster (BLOAQ) Monday.

Once a titan in the movie rental industry, Blockbuster is heading to the auction block this Monday. A few potential buyers are Dish Network, Carl Icahn, South Korea's SK Telecom and a few other lesser known companies. The bidding is expected to be very robust as CNBC reported earlier. Regardless, the share price of blockbuster BLOAQ jumped over 31% with this announcement, closing at $0.12 a share.
As you may or may not know, I actually own a few shares of Blockbuster so I'm always a little bit on the edge of my seat why there is any news regarding this company.

I'm curious to see whoever buys Blockbuster, what will happen with its share price. And also, what will the new owner do with the company. My bet is that Dish Network will take this company over for the simple fact that Blockbuster over the years has built up a reputation (branding) in the entertainment industry. Almost everyone in the US knows Blockbuster, whether good or bad, they know it; and likely they associate the company with movies, games and entertainment rentals. Therefore it's likely in my opinion that Dish Network will show more interest since they are pretty much in the same industry.

We'll see.

Is Best Buy following the footsteps of Blockbuster soon?

Is the big electronic retailer Best Buy (BBY) soon to follow the same fate as Blockbuster video? (PINK:BLOAQ), or Circuit City for that matter. It seems to me they have too many 'lookers' and not enough 'buyers'. Take myself for example; yesterday I was in a Bestbuy and I was looking at an electronic gadget that I wanted to get but I knew I could possibly get cheaper on Amazon (AMZN). The issue with Amazon is, that you can't touch the gadget and examine it, at Best Buy you can! Eventually I did a price check and I found it for a lot cheaper on Amazon actually. It surprised me that I saw too many 'shoppers' walking out of Best Buy empty handed, probably doing the same thing as me. People are using Best Buy as a big window shopping warehouse where they can touch, ask questions (although their 'experts' are left to be desired).
I did some research on the internet because I was curious to see how Best Buy was doing as a company with this phenomenon plaguing their stores and it turns out indeed the above observation is true. Friday the Wall Street Journal wrote a similar article.
People 'shop' Best Buy with the intention to buy it somewhere else, ironically doing price scans with their iPhones that Best Buy sells, to find it cheaper elsewhere.
With the (electronic) retail landscape rapidly changing in todays time, more and more big stores go out of business, Borders, Hollywood Video, Circuit City and Blockbuster just to name a few. All because shopping is shifting to internet (think mobile online shopping, plays a huge part in this new landscape).
And it makes sense. If you have the ability to check with a few touches of your finger to do price check on a certain item you just scanned or looked up, and save tens, if not hundreds of dollars, wouldn't you?
So is Best Buy doomed? In my opinion, not yet, at least not anytime soon. They will probably experiment with adapting to smaller stores business models first before they go under like Circuit City. Even in that case this process will take a few years, however at the moment it is not helping their stock price. The crash that occurred in last December is proof Best Buy's outlook for investors is wobbly.

Eye on BLOAQ (Blockbuster) upcoming trading week

As a vivid shareholder of BLOAQ (Blockbuster: PINK) my eyes are on the trade deck this upcoming week regarding this stock. A lot of activity has been going on this week around this equity, creditors who are not willing to lend the struggling company any more money, and possible take over bids. In my opinion, it's a true do or die situation Blockbuster is finding themselves in. The stock price surged about 15 cents last week, a sign there is a lot of trading volume and activity going on, lets take a look at the following chart;

If the stock manages to keep its RSI (relative strength index) in neutral territory (in the chart above it would indicate a value in between 70, in the upper line and 30, in the lower) in my technical analysis it's pretty much confirmed, there's no way else for the stock but to go up. 

Even after all the negative news around this company I still believe that they will find a way out of this mess. I really do. (and no, I'm not saying that just because I'm a stock holder of the company)

They're well established, are the ONLY corporate video store in the United States, have a great branding label (pretty much everyone in the US knows Blockbuster video) and its stock is trading 15 cents a share, they're expanding and penetrating the markets of Redbox and Netflix by offering Blockbuster Express kiosks and on demand movies on certain cable boxes, what is not to like? $0.15 a share is a bargain... If they get time to regroup, they can be a very attractive company, either for investors or take over companies. Like I said before in previous posts on this blog, I refuse to believe it's a dead end when it comes to Blockbuster. It's current stock price is in a bargain bin, get it while it's hot!

My personal vendetta against Blockbuster video...

These are the times I really love my blog the most, letting out some steam once in awhile. As a shareholder of the company I may have discovered why Blockbuster is doing so poorly, finding a huge flaw in their system. Blockbuster video who refuses to rent me a video game (yes I like to play a video game once in awhile) over the holidays because my credit card information was outdated and did not want to accept my new Visa debit card information although it's under my name and address. Out of principle I didn't want to give out any other credit card information so my wife and I went somewhere else. Guess who did wanted my money... precisely.. redbox, with the same Visa debit card! So I rented Fable III until the day after new years day, great game by the way, but let's get back to the point.

Why would redbox have no problem accepting my payment and Blockbuster declined the same exact form of payment?

Now by Visa debit card I don't mean a Visa prepaid card that you can buy in the supermarkets etc. I understand that, since there is no name or address attached to it. In other words you can pretty much leave $5 on the card, rent a game and never bring it back, no one would know where to look.
But in my case, my debit card had guaranteed money on it, was registered under my name and billing address, it's...well a debit card, not borrowed money from the bank, like a credit card that Blockbuster wanted.
As a shareholder of Blockbuster (BLOAQ: $0.138 -4.17%) I'm not only disappointed but also deeply concerned. For years I've been faithfully renting movies and games, paying a much more heftier price then I should have, after all redbox was right next door, but I kept spending my money loyally to Blockbuster video, since I am stock holder and to me it was the right thing to do.

Well no more.

According to Blockbuster my money is not good enough for them, which concerns me even more, how about all those other transactions that failed because of their same retarded policy?!
Wake up Blockbuster! Instead of closing hundreds of stores nationwide, how about accepting people's money. US dollars! That might help. Redbox got the sale, and guess what, I just discovered Netflix (NFLX: $181.37 +2.96%) has a good deal too,.. I signed up with the same Visa debit card that Blockbuster didn't accept.

I'll still hold on to my stocks though, it's only a minuscule percentage of my portfolio. But I'm tempted to sell it any day and be done with it.

I hope someone from Blockbuster corporate is reading this, they might want to stop missing out on rental money from people like me.
And by the way, just a note, you might want to fix your Blockbuster Express kiosk in my area, all but a few are out of order.