Money Investor
Long/short equity

Outerwall: Long Thesis Remains Intact And Sell-Off Represents Opportunity

Back in June 2013, I made the pitch that shares of Outerwall (NASDAQ:OUTR) were woefully undervalued. At the time, the stock traded for just about $59 per share. Over the next few months, shares bounced around moving ~10% above and below the $59 range. All that changed in the middle of September when the company lowered its guidance for the upcoming Q3 2013 earnings period in addition to FY 2013. I suggest investors read the pre-announcement themselves for the full details. In a nutshell, the company lowered almost all operating metrics from the top to the bottom line with the explanation being that revenue per DVD rental was below prior expectations. This caused investors to dump shares of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details