Friday, February 5th, 2010
Today's Most Interesting Story Stocks
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Coinstar, Inc. (NASDAQ:CSTR), MasterCard Incorporated (NYSE:MA), and Raser Technologies, Inc. (NYSE:RZ) are today’s most interesting story stocks.
Coinstar’s Competitor Falls to the Dust
Coinstar, Inc. (CSTR, Free Analysis), a multi-national company offering a range of 4th Wall solutions for retailers, investors can be rest assured that privately-held ePlay will no longer be a competitive threat to the company. The once-competitor closed its doors and suspended its operations amid the global economic crisis.
However, the company still does face a battle against retailers that are limiting the number of DVDs any customer can buy at one time. The new rules took effect on February 1st and include a five-DVD cap on new releases at Wal-Mart and Target stores. The move makes it increasingly important for Redbox and NCR to buy DVDs directly from the studios.
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Battle for Debt: MasterCard Falls and Visa Rises
MasterCard Incorporated (MA, Free Analysis), a popular credit card company in the United States, saw its shares drop more than 10% after it reported lower-than-expected earnings. The move follows a higher-than-expected earnings announcement from competitor Visa, Inc. (V, Free Analysis), as the two credit card companies battle for consumer debt.
Fourth quarter earnings came in at $2.43 per share, versus analyst estimates of $2.46 per share, on in-line revenues of $1.3 billion. While the market was clearly disappointed by the results, some analysts view the pullback as a strong buying opportunity. Duncan-Williams, for example, upgraded the company from a Buy to a Strong Buy following the drop.
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Raser Technologies Rises Despite Convertible Financing
Raser Technologies, Inc. (RZ, Free Analysis), a geothermal power development and technology licensing company, saw its shares move higher during today’s session despite a dilutive convertible financing. The company sold $5 million in convertible preferred stock plus an additional $14 million in investment rights, in a transaction that closed on February 3rd.
Despite the possible dilution, many investors view the financing as a reduction in concerns about the company’s abilities to carry out its development plans. Moreover, at least one analyst insists that the offering will only by 10-15% dilutive. As a result, shares surged more than 7% during today’s session on the news.
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-- Written by David Breen
