Netflix Rallies on Blockbuster Bankruptcy

I could change the title to “Netflix Rallies on (Insert Any Reason Here)” but today’s reason is a long expected Blockbuster bankruptcy. As if anyone is shocked. But just another reason to squeeze them shorts. Technically I am long Netflix (NFLX) but I have cut it down to a negligible position as I watch in wonderment the parabola in action.

  • Blockbuster Inc (BLOKA.PK) is preparing to file for Chapter 11 bankruptcy within the next few days, a source familiar with the video rental chain’s plans said on Wednesday. Blockbuster Inc (BLOKA.PK) is preparing to file for Chapter 11 bankruptcy within the next few days, a source familiar with the video rental chain’s plans said on Wednesday.
  • Blockbuster is working with debtholders to craft a plan in which it would continue operating but shutter hundreds more stores, said the source, who was not authorized to speak publicly about the situation. A bankruptcy filing is expected as early as Wednesday.

Disclosure: Long Netflix in fund; no personal position

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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