My primary hesitation with the CSTR daily chart is how far it has run this year.
For example, at the low end of the estimate CSTR would trade for .97x sales per share, while the market has historically been willing to pay between 1.14x and 2.03x times sales per share.
On the technical front, CSTR appears poised to open roughly 7.5% lower this morning, placing the shares just above potential support at their 200-day moving average.
FORBES: Coinstar Hikes DVD Rental Prices 20%; Shares Plummet in Response
Since going public in late 1997 CSTR has seen some ups and downs in its prices, but on the weekly chart you can see that CSTR is very close to all time highs.
Other competitors in the services sector include: Coinstar (CSTR), DISH Network (DISH), and Time Warner (TWX).
Coinstar (NASDAQ: CSTR), which owns the Redbox rental kiosks, dropped more than four percent shortly after the announcement.
FORBES: Will Netflix Still be Around When Disney Comes to Town?
The big winner overnight is Coinstar ( CSTR), which is up almost 20% after seeing a dramatic rise in revenues and EPS that handily surpassed analyst expectations.
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For a possible entry in CSTR, I want to look at the daily chart over the past ten months.
While Netflix (NFLX) gets most of the headlines, one of the most remarkable developments in the video rental business over the last few years has been the amazing growth of Redbox , the video rental kiosk business run by Coinstar (CSTR), a company that used to be known for its coin-counting machines.
The top pickers also bought up shares of Coinstar (nasdq: CSTR - news - people ) a small Bellevue, Wash.
Coinstar ( CSTR), which in addition to its namesake coin-counting kiosks, operates the fast-growing Redbox DVD rental sites, has been consolidating price gains since mid-May.
FORBES: Coinstar, Dick's Sporting Goods, Dollar Tree Outpace Weak Market
So CSTR is currently trading for 14.6x price-to-cash earnings, another sign that the stock remains undervalued in spite of the recent rally.
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