Ok.. Coinstar Inc. (CSTR) released their quarterly earnings yesterday. Their net profits rose 3 percent. The company also projected fourth-quarter revenue above analysts' current target. By no means is their earnings results the reason why I decided to feature CSTR. Here's the good part.. also on Thursday, they announced a deal with Wal-mart. They agreed to install its coin-counting machines in 100 Wal-Mart stores on a test basis. This could mean huge things for Coinstar if Wal-mart later agrees to take them in on a larger scale. Wal-mart is perfect for Coinstar. But with situations like this, you have to be careful.. there's a lot of hype involved with "Wal-mart deals".. remember Host America Corp.(CAFE) back in July. (I am merely using CAFE as and example of what happens when people speculate and it's story is in no way comparable to CSTR.) In my opinion, if you are not already in this stock, I believe you should wait a bit.. I think there is a lot of speculation involved especially around this Wal-mart deal. Think about it, company's profits rose 3%.. has good outlook for next quarter.. but the stock is up over 20% Wwaaaallll-mmmaaaarrrrt. CSTR is a great company, they make lots of money, and I wish I owned some.. though I eventually will, just not now
CSTR
Ok.. Coinstar Inc. (CSTR) released their quarterly earnings yesterday. Their net profits rose 3 percent. The company also projected fourth-quarter revenue above analysts' current target. By no means is their earnings results the reason why I decided to feature CSTR. Here's the good part.. also on Thursday, they announced a deal with Wal-mart. They agreed to install its coin-counting machines in 100 Wal-Mart stores on a test basis. This could mean huge things for Coinstar if Wal-mart later agrees to take them in on a larger scale. Wal-mart is perfect for Coinstar. But with situations like this, you have to be careful.. there's a lot of hype involved with "Wal-mart deals".. remember Host America Corp.(CAFE) back in July. (I am merely using CAFE as and example of what happens when people speculate and it's story is in no way comparable to CSTR.) In my opinion, if you are not already in this stock, I believe you should wait a bit.. I think there is a lot of speculation involved especially around this Wal-mart deal. Think about it, company's profits rose 3%.. has good outlook for next quarter.. but the stock is up over 20% Wwaaaallll-mmmaaaarrrrt. CSTR is a great company, they make lots of money, and I wish I owned some.. though I eventually will, just not now
