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Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR) -- Ignore unavailable to you. Want to Upgrade?

To: joe_investor who wrote (171)	6/18/1998 4:34:00 PM
From: Gerald Thomas	Read Replies (1) \| Respond to of 351

no... The problem is that the business model is known and little happens to change the model in the way of news... I still say that when they breakeven for cash flow which will be soon the company will be valued at discount net earnings... Their business plan is for 2000 new machines a year for the near future...when the revenues break 12-14 million they become cash flow positive they should do at least 10 million this quarter and jump a couple million each additional quarter... The depreciation costs are non cash... So two firms have calculated net earnings for a couple years out and discounted that multiple back to this year when they break even EBITDA .... Smith Barney has a $20 target Hambrect and Quist has $15-17 target