Don’t call it a comeback; our favorite video store in the 90’s, Blockbuster Inc (PINK: BLOAQ) is showing signs of life as it closed only $.002 off the high of the day yesterday at $.078 for a solid 11.43% gain! Netflix Inc. (NASDAQ: NFLX) stock has taken a hit in recent months dropping from about $300 in mid-July to current market price of $170.

Netflix’s misfortune could be Blockbuster’s fortune as this trusty video rental store seems to be back! Contrary to what the momentum crowd wished, the new owner of the video store Dish Network (NASDAQ: DISH) decided to keep the chain open. How many people will return to the old video store? The Blockbuster where I live is still open and it still seems to get traffic – $.08 might be a steal right now with a possible comeback in the making!

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Technical Analysis:

BLOAQ has bounced nicely off its support area in the low 6 cents area and spring boarded right past its 20 and 50 day moving averages! The RSI has broken through the centerline with room to overbought territory at nearly 60! Both the MACD and the ADX had positive crosses signaling a possible reversal trend and strengthening trading…

Check out some of my Recent Article Winners: ANX 32%, PUDA 2150%, SNGX 23%, YRCW 81%

The Bottom Line

Well, we all know that BLOAQ exists; the only lingering question still left on my mind is – what happens to Blockbuster’s common stock? If it is any way similar to six flags; we need to run away right now! However, this stock looks like it is ready to pop and this could be perfect timing for us – so only invest what you are willing to lose on this one.

Check out some of my Recent Article Winners: ANX 32%, PUDA 2150%, SNGX 23%, YRCW 81%

Good Luck,

Ian Decker

Disclosure: No Position

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