Check out DTV and NFLX subscription increases from 2007 to now. Their stocks experienced significantly smaller losses in the 2008 fiasco and thereafter they have continued to increase subscription rates - NFLX has gone from being a $20 stock to a high of $300; DTV has trippled. ENTR's own 2000 percent gain between 2009 through 2010 is directly linked to service providers banking on the concept that in bad economical times, people still need entertainment and beefed up their set-top boxes. This has happened while we have had a 10 percent unemployment. People do not turn into monks and nuns in bad economical times; they re-evaluate where they get their entertainment: cable and satellite service costs are still the best value in entertainment.
28% of the float is short. This stock will go nowhere untill shorts cover their position. They will do it in a controlled way so the price doesn't jump. A buyout would make my day cause they would all get cought with thier pants down! :)
Lakeshow - First, very few people think we are going into a recession and nobody I listen to thinks we will see a depression. Second, one can argue that a recession may in fact create more focus on basic, inexpensive home entertainment. People forget what made Hollywood and the movie industry what it is today was the depression and the inexpensive "escape" it offered people troubled by the horrible economic times. I would imagine in case of even harder economical times, inexpensive home entertainment will become a more negotiable/reasonable choice than going out to expensive theme parks and short vacations and other discretionary expenditures. People are more likely to get cable or satellite service and entertain at home, and service providers will give them the boxes for free. Home TV and content viewing is a basic entertainment necessity for most people. In fact, one month of cable subscription is going to be about what a family of five will pay to see one movie a month at a theater.
Now I am not telling anyone to be a buyer of ENTR here; I am not buying more here but not for reasons you outline. I think your reasons are rooted in the commonplace hysteria that is taking down our markets; and I am more afraid of the consequences of that kind of thinking than the fundamentals of our economy or ENTR as a company. As many analysts are now saying, we are talking ourselves into a recession.