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Gone are the days of going to the |
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movie store. Redbox is here to stay. |
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Released on Saturday, September 10, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Coinstar (CSTR) is the company that owns all those Redbox self service movie dispensers inside and ouside of supermarkets, convenience stores and other locations. Those machines are actually treating CSTR quite well. Redbox revenue grew 33% to $363 million in CSTR's last quarter. Revenue for CSTR as a whole last quarter was $435 million, so Redbox is a major part of CSTR's revenue.
Gone are the days of going to the movie store, enjoying the culture and having an extremely wide selection of old and new flicks. Maybe grab a pizza on the way home? People now go to a machine to dispense their movie or stream it through the Internet from NetFlix (NFLX) or Apple (AAPL).
CSTR's Redbox is here to stay for a while and we believe that there is a lot more upside for it. CSTR appears undervalued at its current market cap of around $1.35 billion considering 2010 revenue came in at $1.43 billion and profit of $51 million.
Clearly, the economy and market has weighed on CSTR, but people are still getting movies from Redbox' around the country.
CSTR has recently signed an agreement with Safeway (SWY) to install 1,400 additional kiosks. As a whole, CSTR plans to add 5,000 additional kiosks by Q3.
CSTR is thinking big and aggressive and this company has massive room to expand.
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