Coinstar Rising After Barron's Article (CSTR)

Over the weekend, Barron's did a write up on Coinstar's CSTR success with their RedBox DVD kiosks. RedBox rents DVDs through thousands of self-service kiosks in supermarkets, drug stores and fast-food restaurants for just $1 a day. RedBox is now the second largest player in the DVD rental business behind only Netflix NFLX. According to the Barron's piece, bullish CSTR investors believe the stock could approach $60 in the next year and top $80 by 2013, based on continued high revenue and profit growth at RedBox. "Redbox is supplanting physical stores because of its cost advantage," says Mario Cibelli, a managing partner at Marathon Partners, which holds Coinstar shares. "Coinstar has a terrific management team that knows how to operate in a low-margin business. People love the $1-a-night pricing, especially given the weak economy." Year-to-date, CSTR has jumped nearly 70%. During today's trading session, the stock is getting a boost from the Barron's article, gaining 5.51% to $47.08. Analyze Any Stock FREE! Click Here.