Wednesday, May 6, 2009
Coinstar CSTR
Interesting.....This company owes all the change machines, arcade games, and that new $1 movie rental vending machine you see in Jewel and many other retail stores. They are called Redbox and it accouts for 20% of Coinstar's annual sales. They expect Redbox to increase 80% this year and bring in as much as 750 million. Redbox revenue grew 52% last year.
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Very interesting find. I like the sounds of this company as a short term investment. The reason I say short term is, although I agree that Redbox is a hot commodity right now and could be for the next 18-36 months, ultimately dvd is a slowly but surely dying technology just like VHS was. I don't think it's going anywhere for a while though. I will try to do some research on them as I'd be interested in getting some money in with them and then look at getting out of it sometime in the next 18-36 months depending on performance. I like this though...thumbs up!!
ReplyDeleteI agree with Stu on the short term. The the future of video rental is on demand over the wire.
ReplyDeleteBad news on this stock..It's currently trading at 75x earnings, which makes this a super expensive stock. It's currently trading near it's 52 week high. The company is set to release it's quarterly earnings today.
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