Movie Gallery takes it on the chin again
It’s hard out there for America’s second biggest movie rental chain, Movie Gallery. Its share price is going down and its time is running out. BusinessWeek passes along the word on the Street:
Movie Gallery Inc., the nation’s No. 2 movie rental chain, saw its shares slide to a fresh 52-week trough Thursday after an analyst warned the company may be running low on cash.
Bear Stearns analyst Glen Reid cautioned investors that he now expects the company to record negative cash flow this year rather than starting in 2007.
Movie Gallery has been calling lenders requesting covenant relief for all of 2006, according to DebtWire, a news service read closely by bond traders, which the Bear Stearns analyst cited in his research report.
March 29th, 2006 at 5:54 pm
I would be interested to know whether or not Glen Reid is aware that Movie Gallery is one of the largest sellers and distributors of pornograghy. Maybe they are running low on cash due to the several Federal RICO actions that have been filed against them for selling and distributing pornography across state lines, via United Parcel Service, aka UPS. I would urge Mr. Reid and others as well to visit http://www.thepoliticsinporn.com. This site is very interesting, especially to investors.