Question: What would make investing in blockbuster, AT&T, and Marathon Oil high risks?
What would make investing in these companies low risks?
What do you think? I’m just getting ideas for a paper I’m writing. Thanks!
Answer: not much to contribute… but one thing on blockbuster is the current trend in the video rental industry. They are losing money. Stores used to get copies of movies before they were available for purchase and now they come out the same day. The advancement of technologies like Tivo allow people to record a movie for free and keep it on their DVR indefinitely. Competition is raging to keep customers using the rental industry at all- netflix, mailing your video back, all those programs that are basically the same. It’s due to the fact that people are less willing to drive the the rental store anymore. It’s only a matter of time before the industry is done away with or else completely overhauled. In my opinion it’s a gamble right now whether blockbuster will come out on top or not.