Seeking Alpha

Shares of Coinstar (CSTR -2.7%) haven't found a bottom yet after last week's Q2 revenue miss and...

Shares of Coinstar (CSTR -2.7%) haven't found a bottom yet after last week's Q2 revenue miss and soft guidance set off broad selling pressure. The common theme from critics centers on the premise that the company may have a flawed business model by selling physical products in an increasingly digital market.
Comments (7)
  • Noobluechips
    , contributor
    Comments (17) | Send Message
     
    Physical products will definitely be replaced with digital media, but it is not going to be as fast as people think. The next generation of video game consoles will be out in about a year and they will continue to utilize physical media (these consoles have about 7-10 year life-cycles). CSTR's demise is premature. People aren't quick to give up old habits. I mean, there are individuals out there who still use dial-up.
    30 Jul 2012, 11:03 AM Reply Like
  • whitehead1
    , contributor
    Comments (396) | Send Message
     
    Sales going up, profit going up, I don't know what else CSTR can do to convince the market. Good company with proven business model gets no respect from the investors. People keep dreaming that digital delivery is future. Well there are lots of people I see in line at redbox. They have latest movies NFLX don't. Best value in entertainment for a buck. I even thnik NFLX has pretty good value for 7.99. Lot cheaper then stupid cable or satellite. I am glad I will get an opportunity to get in at lot lower price.
    30 Jul 2012, 09:32 PM Reply Like
  • Momintn
    , contributor
    Comments (3680) | Send Message
     
    They are also going digital with their joint venture with Verizon this year, called Redbox Instant by Verizon. I thought investors liked Verizon. Do you think Verizon makes bad decisions?
    And Coinstar has signed all these deals with supermarkets and discount stores all over the USA and Canada. I don't think dvd rentals are going away any time soon. The prices are just too cheap for the bargain shopper to ignore.
    31 Jul 2012, 12:38 PM Reply Like
  • whitehead1
    , contributor
    Comments (396) | Send Message
     
    I don't know how much investment it takes to start digital steaming but I wish CSTR would do it on ts own, Verizon usually charges lot more than any competitor for most of their services and CSTR has made a living being value to the customer. May be verizon can help CSTR get good content to fight with NFLX. We will see. I am watching CSTR to see where it finds bottom but I see value in CSTR
    31 Jul 2012, 02:13 PM Reply Like
  • Momintn
    , contributor
    Comments (3680) | Send Message
     
    Verizon just wants people to bump up their plan. And so far, that's what people are doing.
    31 Jul 2012, 04:14 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2341) | Send Message
     
    If they team with VZ, they can tap the mobile phone market. Also, teaming with VZ will lower the risk and funding burden. Teaming with VZ is a great move.
    1 Aug 2012, 12:05 PM Reply Like
  • Momintn
    , contributor
    Comments (3680) | Send Message
     
    Contract is signed and will be out this year.
    4 Aug 2012, 01:04 PM Reply Like
DJIA (DIA) S&P 500 (SPY)