Coinstar (NASDAQ:CSTR) is a leading provider of automated retail solutions in one of the fastest growing sectors in the world - the automated retailing industry.
The company's core automated retail businesses include the well-known Redbox® self-service DVD and video game rental and Coinstar® self-service coin-counting brands. The company has approximately 42,400 Redbox DVD kiosks and 20,300 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. Redbox also offers DVD rentals through additional kiosks acquired from NCR Corporation in June 2012.
For the 2012 full year revenue was $2.2 billion, an increase of 19.3% compared with 2011. Operating income for 2012 was $262.8 million, which resulted in an operating margin of 11.9%, compared with operating income of $209.9 million and an operating margin of 11.4% in 2011. Income from continuing operations for 2012 was $150.2 million, or $4.67 per diluted share, compared with income from continuing operations of $115.0 million, or $3.61 per diluted share, in 2011, an increase in diluted earnings per share of 29.4%. Core diluted earnings per share from continuing operations for the full year 2012 was $4.83, excluding non-core adjustments of $0.16 per share, compared with $3.67 per diluted share, excluding non-core adjustments of $0.06 per share in 2011.
The stock is priced high as of this writing, but if it takes a big dip, it may be a buying opportunity. If you like the automated retailing industry, or want more leverage and bigger upside potential, then look at AVT (AVTC) instead.
AVT (AVTC) is seeing some activity on their stock, which recently skyrocketed to record volume and a new 52 week high.
The stock has since pulled back, which we think is a buying opportunity at present prices.
AVT is engaged in one of the hottest and fastest growing industries in the world - Automated Retailing.
Let's be honest... the days of the department store being an arena of growth are long dead (just look at JC Penney). Even once high-flyers like Best Buy are struggling as they are crippled with the overhead of those huge stores across the country. And anyone remember Circuit City?
AVT allows retailers and business owners to open fully automated "micro-stores" which can be placed wherever people gather, like airports, malls, college campuses, hospitals, hotels, etc.
These stores can sell almost anything: from iPads to perfume, cupcakes to caviar, swimsuits to sunglasses. And the best part, they are fully automated, so they can stay open 24 hours a day... perfect when you want to go for a late night swim but left your suit at home.
Seriously, the company has grown by about 50% per year for the past 4-consecutive years (that in itself is pretty amazing), has patents on its technologies, and has contracts with some of the biggest names in the world, including Walmart, Rug Doctor, Blue Rhino, and yes, even the Kardashians.
Definitely worth following.
Or do yourself a favor and buy some now. We think it's going up to $10 a share pretty soon.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.