Seeking Alpha

Jana stake, possible cash harvest has Barron's bullish on Outerwall

  • "Jana ... could be the catalyst that investors have been waiting for," David Englander writes, regarding the activist fund's recent disclosure (see here and here) of a 13.5% stake in Outerwall (OUTR).
  • Barron's thinks Jana is likely to "push management to boost cash generation and return more capital to shareholders."
  • More specifically, "shareholders might urge management to pare new ventures, sell its stake in Redbox Instant, push the company to add debt, [or sell] Coinstar, which might fetch $500M."
  • Wedbush thinks a "cash harvest" could eventually lead to "a large buyback" and the initiation of a dividend. More on Wedbush's thoughts here.
  • Ultimately, Englander says the shares have "more upside ahead."
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