tag:blogger.com,1999:blog-342876902011-04-21T11:27:03.466-07:00Jordan Benincasahttp://www.blogger.com/profile/13127621152138403798noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-34287690.post-1158081773432538932006-09-12T10:11:00.000-07:002006-09-12T10:22:53.440-07:00Since our last posting, MOVI has skyrocketed from $2 to $7 on rumours that Blockbuster would buy them out. It then plummeted back to the $2 when the company posted a negative business quarter. Besides wild shifts in investor sentiment, the underlying business and operational concerns plaguing the company have not changed. Management has stated that they have worked out concessions with creditors until year's end. The company also is still under pressure from VOD, internet movie downloads, and mail-order businesses. However, despite these problems, MOVI is still the second largest bricks-and-mortar video rental chain, only second to Blockbuster. As such, the realities of wall street and main street have shown to diverge from one another once again.<br />We again reinforce our main thesis: If MOVI avoids filing for bankruptcy creditor protection, the company is worth $400 million (approx. $10). The chances of bankruptcy are present, but not inevitable. This is a far different view than what the market has taken in recent months. We are buyers at these prices.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/34287690-115808177343253893?l=galleryis.blogspot.com' alt='' /></div>Jordan Benincasahttp://www.blogger.com/profile/13127621152138403798noreply@blogger.com0