Coinstar Inc., owner of the Redbox movie rental kiosks, rose to an all-time closing high on enthusiasm for the company’s DVD expansion plans and streaming venture with Verizon Communications Inc. (VZ:US)
Coinstar gained 2.6 percent to $70.46 at the close in New York, the highest since shares of the Bellevue, Washington-based company began trading in 1997. The stock has advanced 54 percent this year.
Investors are recognizing the benefits of Coinstar’s acquisition of NCR Corp. (NCR:US)’s DVD rental business, which eliminated a large competitor, and its plans for the joint venture with Verizon, Eric Wold, a San Francisco-based analyst with B. Riley & Co., said today in an interview. The streaming business starts in August, Wold said.
“Investors are buying ahead of another round of good news to come,” said Wold, who recommends (CSTR:US) buying the stock.
Last month, Coinstar announced a joint venture with Starbucks Corp. (SBUX:US) to sell Seattle’s Best Coffee in vending machines in the U.S.
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