Piper Jaffray analyst Michael Olson today launched coverage of Coinstar with an Overweight rating and $38 price target. The parent of the Redbox video kiosk chain closed yesterday at $31.96.
Olson sees several trends working in the company’s favor.
Blockbuster shares rallied sharply Wednesday after the company announced a reduction in the letters of credit it maintains on behalf of Viacom, the company’s former parent, to $25 million from $75 million. The company said the change reflects a reduction in Viacom’s exposure to Blockbuster’s lease obligations.
The battle for control of the DVD rental market is heating up, and taking a toll on all of the key players–retail store leader Blockbuster, DVD-by-mail player Netflix and $1-a-day kiosk operator Redbox, a unit of Coinstar.
Look at the outer shell–the parachute pants, the piano-key tie, the fake tuxedo T-shirt–and you might mistake me for a slave to fashion. Do not be deceived. Early adoption isn’t my thing. I much prefer late adoption, that moment when the trend-worshipping sheeple who have early-adopted drive the unsustainable way of life I so stubbornly cling to ever so close to the edge of obsolescence, that I’ve no choice but to follow.
GameStop shares are getting clobbered today on news that Amazon.com is getting into the business of buying and selling used videogames–and so is Toys ’R Us.
Credit Suisse analyst Gary Balter explained in a research note today that one reason he has maintained an Outperform rating on GME shares is that the company has dominated the used videogame business; he notes that used games generate 44 percent of the retailer’s gross profits, nearly twice the segment’s sales contribution to the company.
I worked for Blockbuster for a brief period of time. I was the President of BBI responsible for new media. It was an excellent career move for me and despite my short time there I learned a lot, got to do a lot and almost became the kingpin of cable!
Blockbuster shares are selling off sharply today due to concerns about the company’s financial outlook for the near future. Slim DVD releases, unheard-of Olympics viewership and remodeling plans–including one called “Rock the Block”–are factors that have negatively affected the bottom line for this year. In order to tighten the company’s belt and get through its current rut, CFO Thomas Carey suggests putting some capital projects on hold for a while. In other words, “Block the Rock.”
On the heels of Netflix’s (NFLX) problems last week getting DVDs out the door to subscribers, Needham & Co. analyst Charlie Wolf initiated coverage this morning of Blockbuster (BBI) with a “Hold” rating.
On an early Saturday morning about three weeks ago, Barry M. Meyer pulled a sheet of paper from the fax machine in his home office, inhaled deeply and held it up to the light of a nearby window.
Blockbuster (BBI) after the close Tuesday announced the termination of its bid for Circuit City (CC). In a statement, Blockbuster CEO Jim Keyes said that “based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed with an acquisition of Circuit City.”
Blockbuster (BBI) shares are getting a lift today from Citigroup’s Tony Wible, who raised his price target on the stock to $8.50 from $8 and added the stock to the firm’s “Top Picks Live” list.
Blockbuster this morning gets mixed reviews for its Q1 financial results.
The bottom-line gets raves: Profits of 20 cents a share beat the Street by a nickel.
The top-line gets jeers: Revenue of $1.39 billion missed the consensus view of $1.44 billion.
There was good news for Apple and Comcast, but bad news for Blockbuster woven into Time Warner’s conference call with investors today. Jeff Bewkes, Time Warner’s chief executive, said that the company’s Warner Brothers studio will now release movies for video-on-demand systems on the same day they are released as DVDs.
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