CSTR - Coinstar Inc - Page 6

oh yea there are still alot of shorts on CSTR no doubt and I agree with your premise that when the 52wk gets taken out that the rest of the herd will cover (i also believe that CSTR will retest/break its 52wk high). What i was alluding to was that its not easy to go long or short a stock which gapped and ran up 12 pts (almost a 25% increase). The risk isn't worth the reward imo.

i would fail.

I'm opening a massive...massive position with these guys. The 1st quarter is when they are finally going to be integrating Coinstar in Bellevue and Redbox in Chicago, which will increase their ability to churn out those rental boxes at a much higher rate. They've worked out partnerships with most of the major players for commission-free gift card sales on their coin counting machines, which I expect to be successful.

But most importantly (and this hasn't been released to the public yet), they've worked out a deal with Starbucks by which they will soon be rolling out machines nationwide that automatically dispense a full line of fresh ground-to-order Starbucks drinks, much like the Redboxes do DVD's. They tried this back in 2007, but couldn't get the machines to work. Apparently the kinks have been worked out. While I'm no fan of Starbucks coffee, just about every other person on the planet is, and a bunch of machines where you pump in 4 bucks and it spits out a latte just like if you had waited in line for a barista to do it is going to be huge. Not sure when they're going to announce it, but this stock is going to fly.

Also, blockbuster is coming back with the "why wait 28 days" guerrilla marketing campaign which is going to directly eat at Netflix and Redbox. Also, blockbuster is already well on the way to entering the kiosk market, providing Redbox's first competition.

I'm staying far away from this one.

It's not insider trading when all you have to do is find your way into their facility in Bellevue and see one on display in their break room which all the employees are using :P.

Blockbuster has had its rent by mail program for a while, and it's done nothing to Netflix. Redbox already had a piece of competition - it was called "the cube". It was big and blue and did the same thing Redbox did. I haven't seen one in ages. Coinstar has leveraged its existing agreements with various corporations, as well as forged new ones with places like 7-11 into what amounts to a monopoly in the field. Not concerned about that at all. There's also the fact that Coinstar is starting 2 new ways to watch movies - they're starting a streaming thing akin to Netflix (which I don't expect to be that huge) and a second way of acquiring movies which I'm not certain I can talk about.

For the record, I opened my position with these guys yesterday on a rather fortuitous dip by which this equity was down a chunk while the rest of the market was going bonkers, then watched it rally to join up with the rest of the market as the day wore on. Just for a change of flavor, I even bought a number of April $55 calls, which are up about 13% over the last 24 hours. I'll be adding to it (on the equity side, not the options side) on opportunity dips from here on out.

I got in today, I am a little worried about it testing the gap and droping to 45.

Sorry guys, I liked this stock too but they are revising down next quarters guidance prior to release and the stock is currently halted and will likely take a sizable hit.

FFFUUUUU I just averaged down so its not as bad. Gaining back some in AH

Revised 4Q estimates... LOL just screwed alot of ppl prior to erns.