Coinstar, Inc. (NASDAQ:CSTR)

This well established coin-counting business is quickly diversifying. They have taken such industries entertainment services, video rental, electronic money transfer, and more. This company is smartly run and has very good potential for growth.

dvd red box

kiodk joint venture will succeed

A great concept. Kiosk in convenient locations for pickup or drop off. Blockbusters are disappearing in our neighborhood. Now we can go online reserve a CD at our supermarket and go pick it up when we are on our normal errands.

great marketing ideas from this company

Coinstar is a multi-national company offering a range of 4th Wall solutions for the retailer’s front store, consisting of self-service coin counting, electronic payment solutions, entertainment services and self-service DVD rentals. Coinstar's 4th Wall products and services help retail customers maximize profit at the front of the store between the cash registers and the front doors. Coinstar’s products are found in supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants.

In May 2006, the company acquired Travelex Money Transfer (TMT). TMT has the third largest money transfer network in terms of agent locations, spread over 138 countries. The global money transfer market is $250-$300 billion in transferred value, growing annually by 10%. Around 175 million people who live outside their country of origin are major drivers to industry growth. This acquisition will help Coinstar to boost earnings in 2007.

Coinstar's joint venture with Redbox, the leading provider of automated DVD rental services, continues to gain significant traction. Redbox has doubled in size to about 1,800 locations over past one year. Coinstar is targeting more than 10,000 Redbox and DVDXpress locations over the next three to five years. Redbox machines are located in more than 800 McDonald's outlets and by June 2007 it is to double the number of DVD rental kiosks inside McDonald's domestic restaurants. With Redbox driving the growth, the shares of Coinstar is expected to head northwards.

Overpriced relative to performance. A correction is likely when numbers continue to dissapoint, especially when we see a general market correction which I believe is overdue.

Coinstar just acquired Redbox DVD vending machines which we (and alot of other people LOVE). We chose RedBox over Netflix for our renting budget. I think RedBox has the ability to outperform independent DVD venders because of their ability to continually provide new releases.

It's too bad I didn't get a better buying opportunity here... I'll have to take it! I am letting my Netflix subscription lapse solely because of this company: Redbox is now on the way home from work in three locations: Walgreens, McDonalds, and Walgreens again! A dollar a night! Way too fricken cool... Not to mention the fact that these guys "own the fourth wall" in retail.

Go Gumballs!

Their opportunity to purchase the remaining interest in RedBox will work out well. Redbox will be the netflix replacement, and may spark other opportunities for coinstar.

Costs are increasing as is the competition. Internally they are making decisions that may be good long term, but short term may drop earnings.

Great cash position, expanding product line, minimal competition