Coinstar (CSTR) is a very, very, interesting situation. The stock is in all time high territory after pre-announcing earnings last week. Coinstar said that revenues will be between $567 to $569 million dollars and earnings of $1.36 to $1.40, analyst are or were expecting $538 million in revenues and .89 cents in earnings. The analyst were not far off as far as revenues but in the EPS department they were off by 52%.
What makes this stock interesting is: all time high, 26% of the float is short, and B Riley raised its price target to $115 a firm who has been right on the stock all along.
The stock is working on a possible new base above its previous peak $64.90ish. We are long the stock at $65.87, I’m playing this one tight with a stop at $64.60. This is our second try since the possible gap and run failed on us last week.