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Beauty or Beast?
by possibly noteworthy at 7:11 pm EST, Mar 19, 2006

Overall, it's currently difficult to place a more specific valuation on shares of Blockbuster. However, I believe there's still potential for the retail business (high-definition DVDs are just around the corner, and the buying/selling of new and used DVDs and video games is quite lucrative), the online rental business is currently in a development/growth life cycle phase, and it will take longer than expected before technology and a successful business model are developed to support the viewing and downloading of videos and video games from the information superhighway. Finally, there is some appeal to being able to occasionally head to the local video shop and pick out a movie. This is something Netflix cannot offer, while Blockbuster is offering in-store coupons to online subscribers. Shares of Blockbuster are not for the faint of heart, but if management successfully navigates current turbulence, shareholders could be duly rewarded with this value play.


 
 
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