Blockbuster Inc. (NYSE:BBI) moved up 12% in mid-day today after Chairman/CEO John F. Antioco disclosed a 220,000 share purchase at $4.66 after the bell yesterday in a form 4 filing with the SEC. This move marks a continuation of BBI's bullish run from $3.74 in mid-October to its current level of $5.10. The $1 million transaction also came just before today's news that Papa John's and Blockbuster would be teaming up to promote their online properties - an area in which Blockbuster is struggling. The new agreement allows Papa John's customers to sign up for a free trial of Blockbuster's online DVD rental service by going to Papa John's website - in exchange, the pizza maker is offering a $10 gift card.

Also worth noting, Fitch also boosted the company's outlook from "stable" from "negative" earlier this week citing improved financial flexibility, a stronger liquidity position and cost-cutting efforts. The ratings firm also warned, however, that Blockbuster's revenue growth continues to be hurt by structural changes in the industry, competitive factors and its 2005 decision to eliminate late fees. Clearly, there are still a lot of problems left for this company to address; however, improvements to their online renting program and strong insider buying may prove to be the forumla to success. This stock is definitely one worth watching in the coming months.

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