New York, NY--Blockbuster's CEO, John F. Antioco, met with creditors earlier this week ,not a good sign, to warn them about Blockbuster's continued weakness. The short interest on BBI has risen the last few months, currently (as of July 15th) at 27,544,971 shares. If Blockbuster develops credit problems expect the shorts to jump on BBI like fratboys on a promqueen at a college frat party, 8-balled up and ready to ride. Pitter patter..let's get at her! Netflix came through with thick profitability over the last qtrs. The market realizes that Netflix can sit and wait at its current price point, offering unlimited rentals for $17.99 a month with three discs out at any given time. Blockbuster has tried to compete on price, and failed. Its offering is a few dollars cheaper and even includes two free in-store rentals. However, it's becoming clear that in battling Netflix on price, it appears to be debasing the value bricks-and-mortar business. BBI longs are hoping, no wishing that AMZN will come to their rescue. Don't bet on it. AMZN likes winners. Everyone likes winners. That's why the Yankee's are so loved (Met's lick ass). And NFLX has demonstrated time over time that it can't be beat. If BBI collapses, it will be bought by some reorg fund or investor. My nose is saying Carlos Slim or Icahn (ofcourse). Carlos Slim has deep pockets and he likes buying things in the US, like CompUSA . However AMZN would have no other choice, BUT to buy or sign up with NFLX.
Jgonzz is long NFLX..
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