Covered Blockbuster 

 
I covered my short of Blockbuster (BBI) at $5.76. I'm pretty sure it still has downside potential, but it's a lot less than it was when I sold it at $10.01. I still think that long term they're not all that viable -- their business plan doesn't seem to understand the future of media distribution.

I feel dumb for not dumping my Montpelier Reinsuring (MRH) after Katrina struck -- it seems pretty clear that insurance companies are going to take a short term bath from a disaster like that. But I didn't, and now that it's dropped 40%, I don't feel like it any more. If it drops another 25% I'll probably even pick up some more -- they should do OK long term.


 

Filed Mon - September 12, 2005, 06:09 PM in

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