To many authors are looking at this on a percentage basis, 20%. What they fail to see is the physical dollar change in price which is a mere 20 cents. A customer could find more than this in a single coin laying under the machine. The fact that this is the first price hike in 8 years also means that the company has increased their prices slower than annualized average inflation. Thus Redbox has actually managed to make its product cheaper, relative to when they first started renting.
I am a holder of CSTR call options and I am not worried one bit about the price hike. If anything I am encouraged that the company has taken such a bold step while doing so carefully as to not piss off customers. (Unlike some other rental Services!)
Personally, I am shocked this article was even published by SeekingAlpha. There is minimal information, and gives the reader no analysis or justification as per your recommendation.
I am highly skeptical of the idea that studios would generate significant cash flows by locking out renting services like Redbox for an additional 32 days. Seems more as though they are jealous of the fact that they did not expand into the industry through subsidaries and now companies are profiting off of their efforts. I still believe the consumer would hold off buying, even if that meant waiting an additional 32 days.
Refinance Program Bust: Stay With mREITs [View article]
You are missing the point. We are commenting on the fact that Obama has produced an executive order that only aids a select group of people and not a broad based. This is not a discussion of political ideologies.
To be honest, I unfortunately haven't had the time to sit down and read through the conference call and break it down myself. It's been a pretty busy week. Looking at your estimates and math work, it seems to be relatively on track. I agree with using the conservative estimate for decrease in volume although I honestly believe that they will see growth, not a decline. What I am curious to see is a breakdown of the duration of rentals. I'd like to see exactly how many rentals are 1-day, over night rentals versus those rentals that are 2- 3 days and those that are 4+ days.
In regards to negotiating lower fees with the credit card companies, I would not be surprised if they managed some "exclusivity contract" with both Visa and MasterCard so that those are the only cards accepted. Sure this may alienate American Express and Discover customers, but let's be honest, nearly everyone has a Visa or MasterCard credit or debit card. Even without an exclusivity contract, the company can clearly show the credit providers evidence of increasing transactions which could aid them in their efforts for a lower fee.
Hopefully tomorrow I'll have some time to sift through everything and I'll be writing a follow up article on CSTR to help everyone decipher their next move.
Personally, a 20 cent increase in price is not going to affect whether or not I rent from redbox. They could have changed the price to $1.50 and I honestly would be fine with it. This is where the genius of CSTR's model shows it's strengths. To you and me, that 320 cent increase can be made up for by simply looking underneath the machine and picking up the two dimes that the previous renter dropped and was to lazy to pick up. For Coinstar however, we are essentially talking about a 20% markup for which there will be minimal consequences.
I agree with you on the 60 waiting period, it seems trivial to me. By extending the delay period the studios will be hurting themselves as well, it serves to benefit no one.
As for the stock price, I am still confident that current customers will stay loyal and that new customers will continue to come over from Netflix. We saw today the stock showed what I consider to be considerable strength in what was a rather flat market. I think that now that the price has dropped, we'll see the 11+ million shares that were sold off begin to be covered which will help move the price forward. Personally I am maintaining my long position in the company through the use of the Jan 55 Calls.
As mentioned in comments below, CSTR already has several major studios locked into contracts. I honestly believe this "60-day delay" period is bogus. If studios were to go through with it, not only would they be pissing off companies such as Netflix and Coinstar, but they will be irritating their own customers as well who want to view these movies at their own convenience. Besides, what do the studios have to gain by locking out the video services?
Refinance Program Bust: Stay With mREITs [View article]
In line with what previous comments, a non-recourse loan means that in the event of default, the bank has no course of action. If anything, any mortgage that is refinanced under the new program SHOULD BE a recourse loan, as most are. Can you cite your sources so that I might look into this? Thanks!
Could 'Occupy Coke' Movement Affect Results? [View article]
If anything, he's offering Coke free advertising. I feel like going to the store now and buying a couple of bottles just to spite him. I don't even drink soda.
Could 'Occupy Coke' Movement Affect Results? [View article]
Does anyone still watch MTV now that Jersey Shore is over? This video jockey is a nobody looking to make a name for himself by taking on a company that has done nothing other than produce a soft drink that millions of people love to enjoy.
A correction in the article needs to be made, the share buyback is valued at 50 million dollars and 250 million dollars respectively, not billions of dollars. Thank you to a reader for pointing that error out!
Visa (V): FQ4 EPS of $1.27 beats by $0.02. Revenue of $2.38B (+12.6% Y/Y) misses by $10M. Adjusted (non-GAAP) full-year EPS of $4.99. Increases buyback plan by $1B. Shares -1.7% AH. (PR) [View news story]
Refinance Program Bust: Stay With mREITs [View article]
Looking at what his administration has done, I'm really not surprised. I can't wait to see what else he has in store now that he'll be issuing "executive orders".
Refinance Program Bust: Stay With mREITs [View article]
Agreed, this program benefits only the select few, dare I say the 1% versus the 99%. As much as I like the idea of using the monthly interest savings to pay down the principle faster, I would not be adverse either to seeing that savings flow into the open market.
Never did I make any reference to GM building cars overseas, why you think I am attacking them or belittling their work is beyond me. Though you spouted many facts, your abrasiveness makes me brush your comment off as an overly zealous GM fanatic.
Coinstar Vs. Netflix [View article]
I am a holder of CSTR call options and I am not worried one bit about the price hike. If anything I am encouraged that the company has taken such a bold step while doing so carefully as to not piss off customers. (Unlike some other rental Services!)
Personally, I am shocked this article was even published by SeekingAlpha. There is minimal information, and gives the reader no analysis or justification as per your recommendation.
Earnings Pop For Coinstar? [View article]
Refinance Program Bust: Stay With mREITs [View article]
Earnings Pop For Coinstar? [View article]
In regards to negotiating lower fees with the credit card companies, I would not be surprised if they managed some "exclusivity contract" with both Visa and MasterCard so that those are the only cards accepted. Sure this may alienate American Express and Discover customers, but let's be honest, nearly everyone has a Visa or MasterCard credit or debit card. Even without an exclusivity contract, the company can clearly show the credit providers evidence of increasing transactions which could aid them in their efforts for a lower fee.
Hopefully tomorrow I'll have some time to sift through everything and I'll be writing a follow up article on CSTR to help everyone decipher their next move.
Earnings Pop For Coinstar? [View article]
I agree with you on the 60 waiting period, it seems trivial to me. By extending the delay period the studios will be hurting themselves as well, it serves to benefit no one.
As for the stock price, I am still confident that current customers will stay loyal and that new customers will continue to come over from Netflix. We saw today the stock showed what I consider to be considerable strength in what was a rather flat market. I think that now that the price has dropped, we'll see the 11+ million shares that were sold off begin to be covered which will help move the price forward. Personally I am maintaining my long position in the company through the use of the Jan 55 Calls.
Earnings Pop For Coinstar? [View article]
Refinance Program Bust: Stay With mREITs [View article]
Could 'Occupy Coke' Movement Affect Results? [View article]
Could 'Occupy Coke' Movement Affect Results? [View article]
Earnings Pop For Coinstar? [View article]
Visa (V): FQ4 EPS of $1.27 beats by $0.02. Revenue of $2.38B (+12.6% Y/Y) misses by $10M. Adjusted (non-GAAP) full-year EPS of $4.99. Increases buyback plan by $1B. Shares -1.7% AH. (PR) [View news story]
Refinance Program Bust: Stay With mREITs [View article]
Refinance Program Bust: Stay With mREITs [View article]
Refinance Program Bust: Stay With mREITs [View article]
America: Built Ford Tough? [View article]