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

To: Mr.Gogo who wrote (47515)	4/19/2012 10:19:21 AM
From: NikhilJog	Respond to of 78516

GOgo - you are correct. I mentioned in my writeup. I get bored to rewrite things. But this time, i will not direct you to SA writeup, otherwise Jurgis will start again with how i am trying to promote myself... If you look at the 10K for redbox from 2010 to 2011 and look at the payouts for studios, these have increased 45% YoY for 2013, 2014, 2015. 2011 is also the year where they extended/resigned some studio deals such as Universal. Redbox capitalizes its costs, so you might not see an increase on the income statement YET but don;t be fooled by it. If you read the court documents from 2008/09, you will also find how imp. relationships of studios is with wholesalers and how it affects red box margins. That relationship which played out for Redbox until now is becoming more costly, day by day. so the story does not look too good. There are some other things I am worried about, such as JV's, recent acquisition, marginally declining footprint in US ( this needs a little more detailed explanation). So i will be tuning into their calls to see any signs of the probability of my catalysts panning out and then take an appropriate position...