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

To: Jon Coert who wrote (174)	6/22/1998 8:37:00 PM
From: Gerald Thomas	Read Replies (1) \| Respond to of 351

So I guess the 10's of billions in coins will just evaporate into thin air... This is a very predictable business model... just look at the financials... Every major category appreciates quarter over quarter... This isn't rocket science...when sales are enough to make them cash flow positive the show is over... They are adding 500-600 machines per quarter... you might want to read a couple of prepared reports or re-read their annual report...

To: Jon Coert who wrote (174)	6/22/1998 9:02:00 PM
From: SlateColt	Respond to of 351

Why? Convenience... I'm a big pundit of using credit cards for everything also. However, I still amass mounds of change as does everyone. Instead of looking at in terms of machines and revs/machine, lets look at the theoretorical limit (US only) of revenues. Lets do some quick math. Using your $100/yr estimate with, lets say, 200 million people in the US. That gives us $20 billion in coins. If everyone turned in their coins at a Coinstar machine for a 7.5% fee, we have a total of $1.5 billion. Big number... Obviously, parts of the equation are wrong: 1) % of persons using machines will not be 100% and 2) market coverage is less than 100%. ---------- market coverage ---------- Usage 25% 50% 75% 100% 1% $3.75 $7.50 $11.25 $15.00 2% $7.50 $15.00 $22.50 $30.00 5% $18.75 $37.50 $56.25 $75.00 10% $37.50 $75.00 $112.50 $150.00 20% $75.00 $150.0 $225.00 $300.00 (in millions) Questions are: 1) What is their current market coverage? Planned? 2) What usage percentage is accurate? Can that even be measured? Is that reflected in "same store sales" increases? 3) How much can Europe be expected to contribute? EU and new currency seems like a huge market. But, is it a one time shot? 4) Would banks ever be interested in installing self-service machines for the public to use? Just some random thoughts... I maintain a small position in the stock and have added some more recently due to the oversold condition...

To: Jon Coert who wrote (174)	6/23/1998 12:58:00 AM
From: joe_investor	Read Replies (1) \| Respond to of 351

Ah, just as I commented about the low activity on this thread, Jon comes to the rescue. Thanks Jon. All that I have to say is don't tell your bank! Once they learn that they can charge you, they will. They'll probably put a CSTR machine right in the lobby for you. The credit union where I bank uses them already. It's not nearly as convenient as the grocery store however. Realy Jon, this company is like a regulated utility without the regulation. Installed base builds a scale of economy that produces an excellent revenue stream. Are there risks? Of course. Is it a sure thing? No. Nevertheless, I hold a small position and have added shares in the last week due to what I feel are low prices and the pending positive cash flow turning point. Whatever you decide to do with the stock, I wish you well. SE