Blockbuster...ehh, maybe we'll just hit the Redbox

Blockbuster (BBI) lost a whopping 77% today...although it did bounce back a little in after hours trading but I don't read too much into after hours trading. So what's going on with Blockbuster? I don't know but I do know one factor that is surely contributing to Blockbuster's troubles--Redbox.

Redbox? I know, you're thinking, "What is that?" "I've heard about it but don't know what it is." Or maybe you do know and you can disregard the prior statements. Either way, the Redbox has been a hit for its owner...Coinstar (CSTR). Yes, Coinstar owns the Coinstar machines that turn your change into cash for a 10% fee and they also own Redbox--the red machines that you can rent dvds from for just $1 a night. What's all the hype about? Well, take a look for yourself, here are 6 month daily charts for both of the stocks...you can see for yourself which stock is seeing inflows of capital and which is seeing the flight of capital.I know which stock I'd put my money in.

Good luck out there.

TLT