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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (47246)	3/29/2012 11:05:06 PM
From: gizwick	Respond to of 78516

And now they are turning their copper coins into additional cash. $175 for every $100 in pennies.

To: Sergio H who wrote (47246)	3/29/2012 11:29:52 PM
From: Mr.Gogo	Respond to of 78516

this is one more reason taht coinstar may take a cut in earnings: bloomberg.com

To: Sergio H who wrote (47246)	3/30/2012 10:54:16 AM
From: NikhilJog	Read Replies (1) \| Respond to of 78516

Sergio - thanks a lot. I def. will. However, without even reading the article, I can tell you that you are correct about low pricing. One of the main conclusions I have come up among few others is that CSTR will get squeezed if it continues with its low pricing strategies and there are reasons to it - For example - their relationships with studios, where not only their content costs are increasing, but their relationships with wholesalers ( one of the main pillars supporting their low cost strategy) is also changing making it costly for them to acquire titles. Wholesaler relationship is something thats not understood by lot of people or talked about, but is very pertinent to the firm. If the catalysts i am highlighting pan out, then the very basis of Barron's article will be blown away and you will see the share price coming down. However as I have stated, it might be too early to take a short position. So if you want to, you might wait it out a little bit and then buy long term puts or atleast thats something i will do, after the price crosses $70 a share.