Help with Finance decission please!

So, there is stocks right now of a chapter 11 company that is being bought out by a 24per share company...well known. Dish and blockbuster...now If I where to buy stocks in blockbuster at .07 a pop... since Dish bought blockbuster. does blockbuster close their shares out, or does it stay open as its own company with its own stocks? IF they stay open, blockbuster would be a good investment given that they get a few million new customers through dish and more focused on streaming...since netflix took a hit.

Thoughts? Literally thinking about invest a few thousand somewhere. (think its a great idea to have a receiver with streaming, browsing, and normal tv that dish is doing.)

Thanks for any input, I'm 25 and new to all of this.

reply to post by Thrax

most likely it will change to dish

Originally posted by UniverSoul
reply to post by Thrax

 

most likely it will change to dish

Given that, what happens to the stocks or anyone who purchased common (blockbuster) stock? Slowly goes down until dish absorbed or do they pay the stock off? or give dish stocks?

reply to post by Thrax


I am disregarding all of the numbers that you have mentioned.

That being said, why would you even think about buying stock into Blockbuster?

Video rental, is a dying business, and that will not change.

Originally posted by Thrax

Originally posted by UniverSoul
reply to post by Thrax

 

most likely it will change to dish

Given that, what happens to the stocks or anyone who purchased common (blockbuster) stock? Slowly goes down until dish absorbed or do they pay the stock off? or give dish stocks?

edit on 20-9-2011 by Thrax because: (no reason given)

umm im not certain because it would be specific to the type of share and condition of sale but
i think you would recieve stock in the new company, or you may be able to negotiate for a cash payment..im sure there are other options, but im not really an expert

Originally posted by BrokenCircles
reply to post by Thrax

 

I am disregarding all of the numbers that you have mentioned.

That being said, why would you even think about buying stock into Blockbuster?

Video rental, is a dying business, and that will not change.

Dish network bought them out of bankruptcy, dish is focusing on google tv and browser, sling, and now blockbuster...blockbuster streaming. Local stores that support hardware and possible google phones ...etc. To me, that is a decent conglomerate where many companies focus on being the first "full home theater system".
Dish makes good investments and seem to know how to keep stockholders happy. Now adding these things soon. I want to see if I buy blockbuster stock at .07 and sell for even a dollar per share I'd make a crap ton....that is if blockbuster stocks would stay their own and not change into a dish/blockbuster stock.

Not fully sure how that works.

Originally posted by BrokenCircles
reply to post by Thrax

 

I am disregarding all of the numbers that you have mentioned.

That being said, why would you even think about buying stock into Blockbuster?

Video rental, is a dying business, and that will not change.

yep be very weary.
id say there is a chance for profit but make the buy and sell as quick as possible

IF anything I'm still confused with that happens to the current blockbuster stock? They announce on sept 23 what the new online rating will be. IF Blockbusters current stock BLOAQ stays intact I think you would get huge returns...if not I don't know what my losses would be besides what I invest.

reply to post by Thrax


you would be wise to take courses and learn how the exchange works, the different types of stocks, hedging etcetera. be it 1,000, 10,000 or 100,000 dollars you can lose your cash amazingly fast.

years ago i thought i'd leave behind the work i did as i took a course. i spent over a year gaining comprehension of the market, the jargon, how to buy and sell, cost averaging, commodities, stop loss, blah blah blah. watch the movie 'Wall Street' 7-10 times, there is much reality in that film.

then more months spent trading 'on paper', not using real money, to gain experience. when all was said and done i realized that not only could i very easily lose every cent i had, i could get myself into terrible debt very easily.

two of my brothers-in-law thought they were sharp enough to make easy money with stocks. one, a rather brilliant electrical engineer, lost one of his sons college funds trying to make it grow. my sister wanted to kill him. the other BIL was a mathematician, qualified to teach college, worked for the Gov't. he had lost a fortune inherited from his Dad before he passed on (he died young). he was pretty smart but managed to leave nothing behind for my sister and their 4 children.

even when you learn about the market and spend the time needed to do your due diligence, it's still pretty much gambling. the real winners either have inside info or have such huge capital they can influence the marketplace.

in the Gold Rush days, the people that steadily made really good money were the guys selling picks, shovels and camping gear. these days the stockbrokers make money on every transaction, buy or sell, and they don't care if you strike gold or starve.

"Some investors may trade on news about a bankrupt company without fully understanding it. Paul Rachmuth, a bankruptcy lawyer with Gersten Savage, represents Blockbuster shareholders. He says the sale of the company's assets to Dish Network (DISH) for $320 million on Apr. 7 effectively ended the chance that shareholders would get any money. " www.businessweek.com...

Do not want!

Maybe I'll just invest in the new company once reformed or in dish

reply to post by Thrax

Originally posted by Thrax

Dish network bought them out of bankruptcy,
and now blockbuster...blockbuster streaming.

This is similar to Netflix, right?

I have never used Netflix, but not long ago, I was reading an article that mentioned Netflix. It said that their prices have gone up, and also Netflix can no longer give you the movie when it is released. That article said that they have to wait a few weeks, maybe even a month, after a DVD's release, before they can send it to you.

Basically, because the 'big name multi-million dollar production companies' don't like it much, when people are taking money out of their pockets. When legal online streaming of movies is allowed, on the same date that the DVD itself, is actually released, that is money that they do not get. So, most of them are not going to just sit back and say, "Ok then." Most will do something about it.

I really don't know, but to me, that seems like something that I would rather stay out of. Seems awful risky.

I hate myself.

BLOAQ 0.373*

I have been trading stocks since I was 17 years old and using an account in my father's name. I am now 30. So take that how you want to, I'm Jo Blow to you with 13 years of experience.

Personally, I feel that since you are new at this, you should not buy Blockbuster or Dish.

The easiest and most conservative way to get into the stock market game and learn some stuff is to start buy buying major companies like Coke, Pepsi, Kraft, American Airlines, etc. I am not recommending these as particular companies to buy, just giving examples of large, well established companies that most Americans have heard of.

You can Google "Blue Chip Stocks" and find a list of Blues which would be a good starting point. Also, smaller share price stocks with a focus on dividends is a good place to start as well. When you get some experience under your belt you can start doing more risky buys during mergers and buy outs.

Edited to Add: Also, many online brokers won't let you purchase penny stocks in the same way you can buy regular stocks. There may be special forms to fill out, you may have to get approval, and many times their transaction fee skyrockets. It just depends.