Thanks for all of your responses.
After noticing the float is only 3 million shares, and that there is
already a sizable short interested, the prudent action for me is to
stand back and watch this one.
Here's some calculations I did based on information here and in CSTR's SEC filings:
Cost to place a new machine: $12,000 (from SI posts)
Avg annual revenue per machine: $10,597 (from 10-Q)
Fee to store (3 of the 7.5%): $4,239 (from SI post)
Interest to finance machine(13%): $1,560 (from 10-Q)
Technician to service machine: $2,000 (from SI post)
Depreciation (5 year useful life) $2,400 (from 10-K)
Armored car service: $1,000 (total guess by me)
Net Loss before paying for sales,
marketing, management, research,
development, etc. (1,102)
So right now, adding machines just increases their losses.
Maybe in five years, if the machine is still working, you can take
depreciation out of the equation. You'll still be paying the store
fee, interest, the technician, and the armored car, though.
On the other hand, if they can increase awareness of their machines
and get the revenue per machine up, they could become profitable.
We'll just have to wait and see.
By the way, I tried a CoinStar machine this morning at a local
Smith's. It worked just fine.
Good luck in your investing,
--Jon |
