Coinstar Stock Is Cruising for a Bruising

Coinstar (NASDAQ: OUTR  ) investors think they're braced for the worst. 

Analysts see revenue growing just 2% through the first three months of this year, with profitability taking a big hit. Don't make the mistake of thinking that this is as bad as it can get. Coinstar stock could still be a colossal disappointment when it reports on April 25.

In this video, Rick explores why the company behind the disc-renting fleet of Redbox machines could be in for a choppy quarter. Coinstar's decision to team up with Verizon (NYSE: VZ  ) to take on Netflix (NASDAQ: NFLX  ) is too little, too late, and the venture will ultimately crush margins as it struggles to woo streaming video buffs.

Financially speaking, Rick wouldn't be surprised if Coinstar backs off its full-year guidance issued in February. There's little reason to expect Coinstar to post double-digit growth in the future.

There won't be a Hollywood ending for Coinstar stock, and it could be dangerous to own the shares heading into the report itself.

Dig deep into Coinstar
Internet video streaming may be all the rage, but customers still flock to the ubiquitous red boxes that spit out DVDs. How long can Coinstar, the company behind RedBox DVD rentals and its namesake loose-change coin machines, survive on this old media medium? Longer than many may think, especially with its new expansion plans. The opportunity is ripe for Coinstar to grab mark share, but is it the right time for investors to grab its stock? To answer this question, you're invited to check out The Motley Fool's new comprehensive research report on the opportunities, risks, and must-watch areas in Coinstar's future. Simply click here now to claim your copy today.


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  • Report this Comment On April 20, 2013, at 6:01 PM, patiencefirst wrote:

    1st - you didn't disclose your position

    2nd - you threw out facts that have no fact. Did you make them up? I could say you had 40 tacos last night - do I have fact on that no.

    3rd - you forget, cstr is the only place where you can get new releases. Unlike Netflix, their streaming will NEVER get new releases. If you want to do their mail order - you have to wait 2 days. They have a niche which you fail to see. Not everyone streams like you say

    4th - you neglect to mention to mention those who do redbox and Netflix. I do Netflix streaming and Netflix mail order. But guess what, I don't want to wait two weeks for a new release - much less two days.

    5th - you fail to mention anything positive, such as they make more money than Netflix.

    6th - You couldn't be more obvious about your short position. You, are a crackpot - who is so biased your theories get lost in their respective smelly doo doo.


  • Report this Comment On April 22, 2013, at 12:02 PM, LBier49 wrote:

    Let me just join Patiencefirst. Little in real facts, no recognition of what a cash cow & earnings machine cstr is. And completely missing that it is the only low cost 'instant' source of new releases.

    Bottom line, you wasted a lot of investors time. This was a sad excuse for analysis.


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