Blockbuster (BBI) is a perfect example of what can go wrong when you misunderstood industry trends and then realizing it, trying desperately to catch up. In the period from 2001 to late 2002, Blockbuster is the leader in video rental. Its shares were trading at about $ 30 a share and its market cap was about $ 5.75 billion.

But there was a trend towards the development of rental movies via the Internet. Blockbuster has failed to recognize the growing importance of Internet video rental, a bad miscalculation on his part. The shares have fallen steadily over the current $ 3.80 to $ 4.20 channel. Once a big hat, Blockbuster is now a small-cap and is struggling to regain a sense of direction. The company entered into the Internet DVD rental, but has a lot of recovering to do.

Basically, Blockbuster has lost money over the last three straight quarters and struggling to grow its revenues, which are expected to increase just 1.1% in the 2006 budget. His five-year estimated earnings growth rate is a mere 2.5% per year, which is pitiful.

There are many steps in calculating the fair value of a company. However, before doing this, it is essential to know how a company earns its profits. He has done that by selling to consumers? license its technology to other companies? or extraction of natural resources of the earth?

The sensible way to do this is through reading the annual report of the company. What is an annual report? Annual Report is published annually by the public enterprises, to better inform investors about the company line of business. Annual report gives investors a summary of the company line of business, financial health and management strategies for doing business.

Let’s look at CNET Networks Inc. The company in the market under the symbol NASDAQ: CNET. CNET What to do? So cnet.com CNET possesses. But you know who also owns download.com, MP3.com, News.com and ZDnet.com? How do I know? Yes, you guess. CNET’s Annual Report is the answer.