Coinstar Q1 2011 Report

Jan. 18, 2011 - PRLog -- Recent price: 41.50$
P/E Ratio: 28.49
3 month Target Price: 59.29$

Company Description
As posted on their official website, Coinstar, Inc. is a leading provider of automated retail solutions offering convenient services that make life easier for consumers and drive incremental traffic and revenue for retailers. The company’s core automated retail businesses include the well-known redbox self-service DVD rental and Coinstar self-service coin-counting brands. The company has approximately 28,500 DVD kiosks and 18,900 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants.

Recommendation
Coinstar went down sharply recently after it announced a reduction for its fourth quarter earnings from continuing operations guidance to between $0.65 and $0.69 per share after the bell Thursday, from prior expectations of $0.79 to $0.85 per share. The company also reduced its forecast for the full year 2011, it is now expecting earnings from continuing operations to be between $2.60 and $3.10 per share, down from previously stated guidance of $3.00 to $3.50 per share. This should be seen as a temporary downturn. Even if the company is still in growth stage, a nearly 30% drop has to be seen as a short term opportunity to accumulate on this stock, it should be quickly back up in the 50$ levels.

For the complete analysis, please visit:
http://www.investingconsultantresearch.com/2011/01/coinst...

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