Coinstar's "Analyst Day" in San Francisco just ended - the management team did a great job. They said one of their main goals is the double the size of the company in the next 3 years. They outlined a variety of opportunities and addressed a variety of issues from DVD and streaming to Canada's plans to discontinue use of the penny. They indicated that as other media suppliers move away from DVDs this actually will result in a short term increase in Coinstar's Redbox market since there will be more market share available to Coinstar for DVD rentals as others decrease their DVD rentals. This analyst day featured key members of Coinstar's executive team and they were all extremely candid and forthcoming - also optimistic - about the company's growth prospects. Some of the analysts observed that the company seems to have a very solid and consistent strategy and it's the strategy that is driving the company, and the strategy is being adapted to provide more value. Platitudes aside, the company's performance during this analyst meeting was strong and confident.
Of course we all know that some analysts are pushing Netflix into the stratosphere so they will try to find whatever they can that they can twist into a negative to boost Netflix - however - it is difficult for an objective analyst to come away with a negative outlook for the company. The main takeaway is the company's goal to double the size of the company in 3 years (to $4 billion) and they indicated that there is probably a market opportunity of about $16 billion longer term if they pursue all opportunities for kiosk marketing, so if they capture a share of those opportunities, they have good growth prospects. As an investor (long) I was impressed and even if the stock moves down cyclically I am happy to accumulate more on weakness.