Blockbuster (BBI) CEO John Antioco has left a positive impression on investors. The new Total Access program that is in direct competition with NetFlix is experiencing great success online in combination with brick and mortar Blockbuster stores. The company smashed previous subscriber promises by taking on 2.2 million subscribers so far, which is 500,000 added just in the 4th quarter, all due to unleashing Total Access in November. Everyone loves a bargain stock, and Blockbuster is definitely a bargain at 6.27. At the time I wrote this, I imagine it will be much higher. Today, Antioco told Citigroup that he wouldnt be surprised if BBI doubled its subscribers in 2007, with the success of Total Access (its largest competition, NetFlix, has 6.3 million subscribers). Citigroup, after that meeting, changed its price target to now $6.50.
This guest post was written by Ryan Donnell.