The Best Stock Market Buy Signal In 51 Years
by Alexander Green, Chairman, Investment U
Investment Director, The Oxford Club
Monday, January 5, 2009: Issue #910
Media pundits keep reminding us how tough 2009 will be economically. Nevertheless, I predict this will be a good year for the stock market.
How can this be?
The stock market is a leading indicator. It generally falls before consumers and investors realize just how bad the economy is.
It also recovers long before economic activity picks up. Perversely, that means stocks often plummet during good economic times and rally during recessions… or worse.
In the January issue of The Oxford Club Communiqué, for example, I note that:
Stock Market Buy Signal - Full Article
From the Editors at Investment U January 06, 2009
Blockbuster (NYSE: BBI) - Another Nail In The Coffin
Can you hear that, Blockbuster (NYSE: BBI)? It’s the sound of obsolescence.
With the news that LG Electronics will be producing high-definition televisions that will stream movies from Netflix (Nasdaq: NFLX), you can add another nail in the coffin for Blockbuster.
At first, Netflix’s threat to Blockbuster seemed laughable. But now, with more consumers cutting back and looking for instant entertainment, low monthly costs and the ease of Netflix are really starting to squeeze Blockbuster.
And that’s not to say that Blockbuster hasn’t given its rivals a hand. There was the misguided and disastrous attempt to merge with financial-albatross Circuit City (OTC: CCTYQ), the botched roll-out of the “no more late fees - just other fees” program and the complete failure to see how a vindictive fee and collection system could alienate its customers.
But the competition isn’t just coming from Netflix. Redbox’s easy-to-use, dollar-a-day rental system is also stealing revenue. Most Redbox vending machines are located outside of parent company McDonald’s (NYSE: MCD) and inside grocery stores. Often in the same shopping centers as Blockbuster.
In the same way Eastman Kodak (NYSE: EK) missed the advent of digital, Blockbuster missed the transformative power of the Internet and subscription rentals. It’s playing catch-up. And only time will tell if BBI can recover.
Companies mentioned in this article: BBI, NFLX, CCTYQ, MCD and EK.
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