They Were Great Companies Once, What Happened? Netflix Happened: BLOAQ, FNMA, WAMUQ, JPM, NFLX
New Competitors and Real Estate Crisis Ruined These Stocks
It's sad when you think about how large some of these corporations were back in the days, before they became penny stocks. Let us examine what happened with Blockbuster Inc. (PINK: BLOAQ) for example. To speculate and put it in the most simplest terms of what occurred to Blockbuster Inc. was this: One of its employees storms into his executive's office and says, "Quick, we have to keep up with Netflix (NASDAQ: NFLX) by streaming live movies on our website and change our business model before we become extinct!" And the executive probably replied by "Shut the door Jonathan, I'm about to take my two hour lunch". Now this is not exactly what happened, but you're getting the idea. Too little, too late! A small new entrant ran by a brilliant tech savvy individual tore the heart out of a giant video rental from inside out. And what about Redbox? Don't get me started on that. Some of Blockbuster's board members were so old-fashioned that they didn't understand that generation "Y" would rather watch TV on their laptops, than on TV. What happened as a result?
Blockbuster is trading at $0.09 and is going through a slow and painful bankruptcy process and Netflix is one of the hottest stocks financial institutions can get their hands on; with solid fundamentals and forward P/E ratios that are unseen, trading at $217 per share.
Fannie Mae (OTCBB: FNMA) is a different story. After the housing crisis, they were the first on the front line to catch the bullet. Stock is on life support as its trading $0.87 a share with an exploding volume. There has been an increased interest ever since the rumors that both Fannie Mae and Freddie Mac should be privatized. Stock broke through its 20 day and 50 day moving averages of $.40 and $.47 with a surging volume of 21 million shares, gaining 6% just today at Tuesday's open.
And last but not least, we have Washington Mutual (PINK: WAMUQ) that is trading at $.06 a share, and had an exploding volume of 13.8 million shares today by gaining 4.85%. Its average volume is usually 7.2 million shares with an average market cap of $110 million. After JP Morgan Chase (NYSE: JPM) bank has bought Washington Mutual's assets by the governments pressure tactics, some investors of Washington Mutual decided to file a lawsuit against J.P. Morgan to get the fair value of their assets, however they were unsuccessful.
Blockbuster is trading at $0.09 and is going through a slow and painful bankruptcy process and Netflix is one of the hottest stocks financial institutions can get their hands on; with solid fundamentals and forward P/E ratios that are unseen, trading at $217 per share.
Fannie Mae (OTCBB: FNMA) is a different story. After the housing crisis, they were the first on the front line to catch the bullet. Stock is on life support as its trading $0.87 a share with an exploding volume. There has been an increased interest ever since the rumors that both Fannie Mae and Freddie Mac should be privatized. Stock broke through its 20 day and 50 day moving averages of $.40 and $.47 with a surging volume of 21 million shares, gaining 6% just today at Tuesday's open.
And last but not least, we have Washington Mutual (PINK: WAMUQ) that is trading at $.06 a share, and had an exploding volume of 13.8 million shares today by gaining 4.85%. Its average volume is usually 7.2 million shares with an average market cap of $110 million. After JP Morgan Chase (NYSE: JPM) bank has bought Washington Mutual's assets by the governments pressure tactics, some investors of Washington Mutual decided to file a lawsuit against J.P. Morgan to get the fair value of their assets, however they were unsuccessful.
Advertisement
Advertisement
