At this point, it would not make much sense for additional investments by Outerwall. They are probably negotiating with Verizon for an exit strategy. That again places Outerwall in a position that it must find additional business to replace the eroding kiosk business.
Redbox instant was never a huge part of Outerwall to begin with. Sure $65M would've been better spent...but at this point it's water under the bridge. I'm happy to buy OUTR on the cheap on the demise of Redbox Instant.
Core redbox biz was still minting money, last time I checked. Sustainability of that cash flow is all that matters to me.
exactly! i don't get what these other posters here are doing other than pumping their short positions.
nobody is saying buy and hold OUTR for 5 yrs. This is a play on cash flow and how cheap this company has become relative to the steady income stream they have already established. i could care less about redbox instant or eco atm or whatever.
This is a screaming BUY right here until we return to a sane valuation.
Only then do the warnings being issued by analysts and short pumpers become relevant.