longandshort

Coinstar: Standing Up to Continued Challenges from Hollywood

Reasons to go long on CSTR-Redbox:

As an invester you have to ignore the white noise has analyze the business. Just some facts about Redbox:

- RedBox is successful because of its Supply Chain model. No it did not land from mars but was created by another successful Supply Chain business..McDonalds (McDonalds is not about the burger, but rather its Supply Chain and Real Estate).
- RedBox COO= Mitch Lowe, former cofounder of NETFLIX (hmmm)
- Prime candidate for a buyout
- Dividends coming soon
- Oh, I'll be renting the new Star Trek tonight for $1

Coinstar: Standing Up to Continued Challenges from Hollywood

So, I guess what you are implying is that Sony Pictures, Paramount, Alliance, LionsGate and Summit have weak backs?


On Nov 19 03:28 PM joey554 wrote:

> The only agreement that Hollywood and CSTR are going to come to is
> a windowed approach for the titles 30-45 days after release. Which
> is when all the money is made on a rental. What walmart is doing
> with the $10 DVD's doesn't cost the studios a penny it helps them,
> the only one losing money on that is walmart (loss leader) studios
> are all for it they're making the same $ on each dvd. Where as the
> studios aren't willing to let redbox continue to decimate and devalue
> packaged media xosting them millions. On top of that the way red
> box has gone about this whole thing with their PR campaign has only
> stiffened the backs of the studios.

Coinstar: Standing Up to Continued Challenges from Hollywood

Anyone who disagrees with this artilcle must work for Universal or Time Warner. Just ask your neighbor or coworker if he/she rather buy a DVD for $25 or rent for $1/day with the option to buy later.

Walmart agrees with Redbox. Walmart is actually buying DVDs at wholesale market prices prices $18 and selling them for $10. Walmart loses money on DVD sales. They are using $10 dvd sales to lure shoppers in to buy higher margin goods. They make money leasing space to Redbox.

So if you want a DVD, rent it from a Redbox for $1, if you like it buy it at Walmart for $10...consumer wins, Hollywood gets less greedy.

latimesblogs.latimes.c...

Coinstar: Standing Up to Continued Challenges from Hollywood

If you can't beat them, join 'em. Hollywood would again have to embrace Redbox (just like VHS, DVD, internet, home theatre, etc,etc).

If you are shorting CSTR right now, you better keep an eagle eye on the tape, as CSTR and Hollywood will come to some sort of agreement. Don't forget Video game rentals and worldwide growth.
New Long to CSTR.

Should GE Maintain Its Dividend?

I am so glad this article was publised, not because of its positive outlook on GE, but rather because it proves that market analysts are as fickle as the market itself. Till, last week GE was in the doomsday category, now everyone's happy with a dividend cut and that it is GREATLY undervalued. But a JPM analyst rated GE's stock at $9.00 just last week:blogs.barrons.com/stoc.... Whom do I believe??

Should GE be like Cisco or Google and not offer dividends, and yet maybe the stock price will skyrocket. How about analyzing companies with negative EPS, no dividend but share prices in the double digits.

Lets face it, share prices are a matter of supply and demand and investor emotion. Market analysts are bandwith hogs...

Four Stocks I'm Watching This Week

...I meant
the YIELD sitll goes up to unbelieveable levels..so stop the mad panic selling!!

Four Stocks I'm Watching This Week

I think these seeking-A bloggers need to get some basic lessons in stock trading...
The dividend YIELD is a direct percentage of the current stock price. The actual dividend/share paid out is based on the earnings(EPS). People drive the stock price up or down and hence the dividend YIELD moves up or down, but actual business income determines the dividend/share paid out.

So, GE's earnings could double next year, but if panic investors sell and drive the stock price down, the dividend/share goes up, but he YIELD still goes down..so stop the mad panic sellng!!

GE at a Crossroads: Business Model Becoming Obsolete

I would like a little more disclosure from this guy about his short position.
I'll bet he's got a couple of PUTs (maybe only one) for Jan and Feb...contracts under $1.00...gotta have a little more ba--s when you make strong bearish statements like this.
So he thinks GE should be priced just like GM ..how about saying something about GMs business model!

General Electric: Genuine Risk of Collapse?

I find it interesting that this article appeared twice, once on www.minyanville.com/ar... in the morning and now here in the evening. I sense a very strong bias to encourage short selling of this stock . I am surprised the author did not compare GE to the US deficit.....the govt is in a deeper hole that GE in terms of borrowing and lending, did he not dare say that the US economy on the whole is fried as we are a credit driven economy, or that he cannot really short the Treasury?
C'mon...be a straight shooter and omit the question mark from your title, since you are so sure we are all doomed!

Hunting Season in Blue Chip Territory

Altria (MO) - Classic stock that nobody wants to sell. P/E = 4.8, EPS = 3.8, dividend yield = 7%..stock at $18!. With the future aquisition of UST, expect the dividend to rise...

Earnings Preview: General Electric

Equating GE with GM?...man, no wonder we are in this mess...dumb people running around making dumb comments. GM lost the battle in the seventies, during the first oil crisis, GE has always made profits. Yes, they borrow to make profits..please name me companies that do not leverage to do business. If GE goes down, then about 95% of all businesses go down...maybe MSFT, GOOGLE with stronger cash holdings will last...but who will they do business with? Our economy is based on lending, borrowing and returns...its a cycle. ..why can we do this??...because we have enough FOOD to go around. If Bobbo plans to make more dumb comments, just became a farmer as leave us alone!

Buffett Puts Money to Work; Buys General Electric Preferred Stock

Someones got to call a bottom, I think its Buffet again..looks like it might be an OK Christmas

First Time in Thirty Years - GE Won't Raise Dividend

Its time for Engineers to run Engineering companies and MBAs to....heck MBAs can't even manage banks!

First Time in Thirty Years - GE Won't Raise Dividend

Your attitutde expressed in the article is exactly what got us into this mess....you want MORE for LESS or NOTHING. How about commenting about other cash cow companies who don't pay any dividends at all...google, rim...

GE: Struggling Short-Term, But Should Do Fine Long-Term

There is a simple way to prevent Option traders from realizing their $15 put option...........DO NOT sell GE stock if you belive its a strong company. ..simple! Its only a game of supply and demand folks!