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Strategies & Market Trends : Buffettology

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From: Shane M	12/7/2015 10:33:56 PM
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Does anybody else think OUTR Outerwall (Redbox) sounds like a company Berkshire might be interested in? It's a business w/ high free cashflow, but has probably peaked and is having difficulty finding new growth avenues. To me it seems like the type of business you just let run its course, stop trying so hard to find new growth (seems like it's just throwing money away), and redirect the free cash flow into other investments that can use the cash more effectively. This is something BRK would be well equipped for. Anyhow, Here's today's story - in after hours shares fell from @58 to 44. news.investors.com quote: "Outerwall expects total revenue of $2.165 billion to $2.19 billion, compared with its prior guidance of $2.205 billion to $2.24 billion. Analysts polled by Thomson Reuters were expecting $2.22 billion in revenue.Outerwall expects adjusted earnings per share of $7.65 to $8.15, compared with the prior range of $8.82 to $9.52. Wall Street was modeling for adjusted EPS of $9.35" The rate of decline in the business is a critical assessment, but on the face, this seems very cheap even if the business is in decline.

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