OUTR

Outerwall Inc

TMT, Consumer, Event Driven/Special Sit


Presented:04/20/2016
Price:$41.92
Cap:$0.69B
Current Price:$52.00
Cap:$0.90B

Presented

Date04/20/2016
Price$41.92
Market Cap$0.69B
Ent Value$1.27B
P/E Ratio17.37x
Book ValueN/A
Div Yield0.03%
Shares O/S16.58M
Ave Daily Vol591,589
Short Int53.01%

Current

Price$52.00
Market Cap$0.90B
Outerwall, Inc. is a provider of automated retail solutions offering convenient products and services that drive incremental retail traffic for retailers. The company operates through three segments: Redbox, Coinstar and New Ventures. The Redbox segment operates self-service Redbox kiosks, where consumers can rent or purchase movies and video games focused on the entertainment sector. The Coinstar segment is focused on the money consumer sector and provides self-service kiosks where consumers can convert their coins to cash and convert coins and paper bills to stored value products. This segment also offers self-service kiosks that exchange gift cards for cash under its Coinstar Exchange brand. The New Ventures segment focuses on identifying, evaluating, building or acquiring, and developing innovative new self-service concepts in the automated retail space. The company was founded by Jens Henrick Molbak in February 1991 and is headquartered in Bellevue, WA.

Publicly traded companies mentioned herein: Outerwall Inc (OUTR)

Highlights

The presenter is long shares of Outerwall (OUTR) since recent activism has once again put the company “in play” for strategic activity. The presenter thinks the low multiples currently ascribed to the Redbox and Coinstar businesses make OUTR an attractive target for potential private equity suitors, and further identifies opportunities for top line revenue growth and cost savings as factors that could motivate either a takeout or better margins due to increased focus on these areas. He believes OUTR shares can appreciate to $65 - $70.

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Idea Discussion

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