Coinstar Inc (NASDAQ:CSTR)

profitable, easy to use

Outperform due to innovative technology and being one of the few that has embraced a successful business model of dvd rentals while cutting out the brick and mortar costs.

Shot in the dark.

Profitable company with a 50%+ short ratio.

Redbox will become irrelevant.

lp

REDBOX Da Bitch Won!

I'm not a big fan of companies with legacy business models, and/or partnerships with slower-moving giants. Underperform.

DVD's are still very much in use in the general public. The convenience of grabbing a dvd after pumping gas or buying groceries hasn't lost its flair. I expect this to be proven again in their 4th quarter earnings report as it was in 4th quarter 2011.

That being said, Coinstar needs to show some solid profits in the near future through their contract with Verizon for delivering movies to mobile. To stay alive and well, the company needs to continue to evolve and accept the inevitable end of days that are coming for the DVD.

High short interest. Solid earnings. Beat down price.

Significantlly undervalued right now

Super Cheap at only 10 times earnings. Doesn't even need the Redbox instant to work to justify this price. However, if it works, the upside will add nicely to earnings and stock appreciation. I believe it will because I think the leverage of the relationship with Verizon will help get many recurring customers quickly to its platform. Buy it and forget it for at least 3 year when market will finally believe.

2013 predictions report

Low P/E and good business.

With both a low PE and EPS, and the potential of a Verizon streaming deal, this old school machine co is going to grab IPTV market share and may end up the surprise dark horse of video streaming. It's a lottery ticket, but quite a cheap one. management seems to be able to pivot nicely!

The world won't be fully streamed for a while. Until then, RedBox is super convenient. My family uses the boxes every week. And even onece everything is streamed, their partnership with VRZN could keep them thriving. Plus $1 ticket fees to events (in developement) sounds like a VERY interesting next act as well!

Red Box could prove to be a great buy, they have a 9.4 PE ratio, with a PEG ratio of 0.4 and a great ROA of 12.32%. Not many things I enjoy more than a company with a good ROA with a low PE. CSTR 5 year PE ratio is 15.5. That means it is trading at a HUGE discount compared to its earnings $4.91 per share. All of this coupled with hardly any debt makes this stock a great pick.

Way undervalued. Redbox did great considering the Olympics & the Verizon deal is coming.

Eps growth

Coinstar has been unmercifully beaten down over the last few months. It seems I can't go anywhere without waiting in line at a redbox or seeing people use their change machines at the Kroger's I shop at. PE of 9? Count me in - we have room to move back up to where the stock was a few months ago