Coinstar (CSTR) Looks Ready for Prime Time

I love this blog for the contributions I get from the community. I am not a computer like some of you and rely on idea flow.

Fellow Canadian stock junkie Chris knows I want stocks at all-time highs and he may be on to a big one with Coinstar (CSTR). He sent me an email this weekend with the stock as a Wallstrip show idea. It has been public now for TEN years and is poised for potential greatness at all-time highs.

I have not looked at the stock in years and in pulling up the chart you will see why . It has been recovering from a blow-up in 2003. That’s on the berge of being ancient history. My wife and I use these machines all the time, but I have never considered the stock until now. Smart looking website and partnership ideas to cash in on coins.

It’s like a pawn shop for coins. Ten years of distribution expertise and technology benefits may just be getting this one going. Or not :)

This is basically a bank and I have a hunch this stock will be gobbled up by a bank. Time will tell.

Any insight for me here readers?


  1. bocagirl says:

    Hi Howard. We just used Coinstar for the first time last week to cash in a lot of coins. We got four $30 Amazon gift certificates (for $30 of coins each certificate), plus a form to mail in to get a bonus $10 Amazon gift certificate through email. We made money on the deal, Amazon will sell us some stuff, but I don’t see yet where Coinstar makes sufficient revenue in this set up.

    Maybe you’re right, their goal could be to get bought out by an online retailer or a bank.


  2. howard lindzon says:

    boca – I imagine you gave coinstar close to 40 dollars wrth of coins. pmuch better than an atm

  3. Scott says:

    I always thought coinstar was a great idea, it just suffered from poor execution (What is their cut, something like 6.9%?!) While they had a lot of customers, I’m sure a lot of people reconsidered once they saw the cost. Now that coinstar allows redemption in the form of gift certificates, it makes a lot more sense. Make the companies foot the bill and consumers think they’re getting a convenience for free, while coinstar continues to make bank. Sounds great to me, I even used a coinstar for the first time a month ago.
    Only problem here is that many banks will do this for you free of charge…

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