jayker

Redbox: New Video Rental Competition for Blockbuster and Netflix

The problem with piece above in my mind is not about whether Redbox is a good product or not (in my mind it is, granted all the drawbacks but at around 20% of the cost of a BB rental this is a great impulse purchase). The bigger issue is that the writer thinks that the his discovery has not been discovered by the market. I question Peter Lynch's philosophy in a market that is laregely efficient. Unless one had some inside info on RB's expansion, Coinstar's price has pretty accurately reflected RB's value already. Same argument to shorting BB - its already trading at well below peer companies so its position vis a vis Netflix is factored in. For someone truly SEEKING ALPHA, the above article is all about jumping onto a BETA based gain. His "discovery" is only a year behind - take a look at the CSTR stock chart and the news from the compny. Come up with some better ideas folks and give us some info that is unique.