Entrepreneur In Training

Coinstar & Redbox

I’ve written about Redbox before and how I am a big fan. Last night I went by to pick up a movie and here was the scene.

I had to be a little careful taking the picture. With 10 people in a picture taken at Wal-Mart there are very good odds that at least one of them is on the run and doesn’t want his picture taken.

As someone wanting to get a movie that line is not good, but for a shareholder its outstanding! Every time I walk by a Redbox and see people in line I let out a little “Cha-Ching!”. Each month I’ve set it up to have a small amount of Coinstar stock purchased. In March I purchased 3.36 shares at $28.55. Today the stock (CSTR) is at $31.45. Obviously I’m not retiring on this but I see a healthy future for Coinstar. Their primary business is the coin machines you see in grocery stores. With this economy more and more people are going to be cashing in their piggy banks for gas and groceries. Coinstar also owns a 40% stake in Redbox together with McDonald’s. As people continue to tighten their belts and cancel their Netflix and Blockbuster subscriptions they will still be watching movies. Redbox at $1 a night is pretty enticing. Redbox recently signed agreements to expand coverage in Wal-Mart and Walgreens. Target, where you at? I don’t need guys like the one in the wife-beater chasing me down for taking his picture.