Over the past 2 days, Movie Gallery has risen 30% on very high volume and no news. Wonder whats going on? 2 theories. First, any mutual fund that started buying would cause such a rise as this, sinc the float is so small. Second, MOVI reports their cash flow and projections to the bank group once per month….its quite possible that the figures leaked out from the bank. Remeber, it was the bank group that leaked out the early results of the 2005 4th quarter.
Note that the 4th quarter should be really good for MOVI in the sense that the titles released to video have a much higher box office take. Same store sales should be up quite a bit. If they are, then the debate over why they dropped in the first place will be over…it was the content.
