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BBI - Antioco to Leave
By Stock Charts | March 20, 2007
Antinoco’s announcement today of his eminent departure by the end of the year briefly halted BBI’s recent recovery and seemingly caused a spike in NFLX. This seems to be the classic case of investors overreacting. Antinoco and Icahn’s rocky relationship did not help much as Blockbuster struggled to regain its share of the video rental market.
One of the keys to BBI’s turnaround over the past few months was their Total Access program that allowed Blockbuster to differentiate its own online rental program by leveraging their primary advantage–the brick and mortar stores. While Blockbuster’s online program was initially plagued with delays and complaints, leading investors to exit in droves, it seems that things are finally on the right track. Blockbuster Online reached 2 million customers this January, compared to Netflix’s 6 million plus. I believe that with the new video game consoles as well as high definition DVD formats on the rise, Blockbuster is well positioned to regain it’s old dominance, as the stock chart shows.
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