Blockbuster Under 40 Cents per Share: Penny Stock Trading (BBI)
Hard to believe but Blockbuster Inc. (NYSE:BBI) shares have now lost almost half of their value since last Wednesday (Jan 20th), the stock is trading at 39 Cents today and everyday it looks more like just another penny stock.
The selling continues and Blockbuster (BBI) appears to have flatlined at the 40 Cent level since last week's fiasco when the company announced that expected EBITDA for 2009 to $195 to $205 million which comes out to a net loss of $183 to $193 million. Blockbuster's December efforts to load up on inventory and ramp up its marketing budget failed to drive holiday sales. BBI made the Fool.com's This Week's 5 Dumbest Stock Moves, what an accomplishment.
Blockbuster is talking down its guidance for all of 2009, and the retailer is back in cost-cutting mode in 2010.
Blockbuster Inc. (BBI) shares hit 13 Cents this past year, now that they are 39 Cents they only have another 26 Cents to go to reach a new low. At this rate, Blockbuster is going to have to face the music of being delisted from the NYSE or dare I say -- bankruptcy.
Time will tell if Blockbuster Inc. shares are just another Penny stock or perhaps an underrated diamond in the rough, but its up to the company's management and actual sales to convince Wall Street they are worth more than just a handful of spare change.