Blockbuster Inc. Becomes a Penny Stock (BBI)

Blockbuster Inc. (NYSE:BBI) shares are down 8% today and now trading for 75 cents.  In the last 5 years Blockbuster has lost its business to Netflix (NASDAQ:NFLX) and its stock has dropped 91%.  Consumers are done with the be-kind rewind days and Wall Street is losing its love for BBI shares.

Wow what a difference!  Blockbuster (NYSE: BBI) posted a third-quarter net loss of $116.8 million, or 60 cents per share, compared to a net loss of $20.6 million, or 11 cents per share during the same quarter last year. The company attributes its deeper net loss to a write-off on debt financing tied to expenses associated with the company’s refinancing of the sale of its Irish subsidiary, Xtra-vision Limited.

The company's sales also fell 21%, partly due to a drop in same-store sales--or sales at stores open for 12 months or more -- and because of the closing of stores and the impact of foreign currency exchanges, the company said.

In the third quarter, Blockbuster recorded $910.5 million in sales, down from $1.15 billion a year earlier. Gone are the days when Blockbuster ruled the home entertainment option, you don't have to rent the VCR and tapes, all you need is the ability to download (thank you Netflix).