DVD Rentals Report Card
May 2010

SET YOUR PRINTER PAGE SETUP SETTING TO "LANDSCAPE" TO PRINT THIS CHART

Company

Symbol

P/E (For-ward)

Price 4.30.10

Earning Growth 1 Year

Sales/ Income

B=billion
M=million

52-wk high/

52-wk low

Market Cap/

#Shares

Debt/ Equity Ratio

Net Profit Margin

Insider Trading

CoinStar

CSTR

19.46

$44.36

+90%

1.14 B

25.64 M

$38.28

$23.49

1.19 B

31.12 M

1.14*

2.56%

More than $3 million sold.

Netflix

NFLX

28.83

$98.90

+22%

1.67 B

115.86 M

$109.70

$36.25

5.52 B

53.53 M

1.20*

6.94%

Over $10 million sold. Consensus insider selling. CEO, directors, etc.

Blockbuster

BBI

-0.87

$0.37

-20%

4.06 B

-528.70 M

$1.56

$0.24

83.86 M

209.66 M

NA*

-12.74%

Carl Icahn resigned and sold 13 million shares for about 27 cents per. Consensus insider buying spree, including SVPs of finance & operations.

Source: MoneyCentral.Msn.Com, PR NewsWire, BusinessWire & Sec.Gov.

* See the comments section for further examination of the debt of these three companies.

IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Blockbuster

Global provider or rental and sales of movies and games, by mail, in-store and now in rental kiosks.

Long term debt (including capital leases) was at $856 million as of the end of 2009. Recently made deals with Warner, Fox & Universal to ensure they get new releases without worrying about capital constraints. Also, secured deals to get some movies before they are available on Netflix and RedBox. On January 21, 2010, Standard & Poor’s changed Blockbuster’s outlook to poor from stable due to deteriorating market conditions. On February 17, 2010, Standard & Poor’s downgraded BBI’s corporate credit rating to CCC from B-, with a negative outlook, and lowered their Notes to CCC from a B rating. On March 2, 2010, Moody’s downgraded both BBI’s probability of default rating and our corporate family rating to Caa3 from Caa1, with a negative outlook. Further downgrades in BBI’s credit ratings could adversely affect their ability to access capital in the future upon acceptable terms and conditions.

CoinStar

Red Box DVD Rentals. Coinstar coin exchange. Debit cards. Money transfer. Global provider or rental and sales of movies and games in rental kiosks.

 

Coinstar liabilities equal $822 million (including debt and capital lease obligations). Long Term Debt = $416 million. Rev. $350 million, with income of $6.4 million in the 1st Q 2010, according to the 10Q released on April 29, 2010. Has been suing Warner, Fox & Universal for not providing it with their film libraries. Revenue is rocketing up, however! "Revenue for the first quarter of 2010 was $350.1 million, an increase of 46.6% compared with revenue of $238.8 million in the first quarter of 2009. The increase is primarily due to the growth in DVD revenue, which was $263.2 million in the first quarter of 2010, an increase of 70.1% compared with $154.7 million in the first quarter of 2009,"  said J. Scott Di Valerio, chief financial officer of Coinstar, Inc.

Company

Description of business

News and Comments

NetFlix

Netflix, Inc. is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs (DVDs) by mail to more than 12 million subscribers. No late fees, no mailing fees, no pay-per-view fees and no due dates.

Total Liabilties of $502 million (including debt, capital lease, and about $103 million in accounts payable). 13 million subscribers (according to 1Q 2010 earnings report, released on April 28, 2010). Revenue for the first quarter of 2010 was $493.7 million, representing 11 percent sequential growth from $444.5 million for the fourth quarter of 2009. GAAP net income for the first quarter of 2010 was $32.3 million, or $0.59 per diluted share compared to GAAP net income of $22.4 million, or $0.37 per diluted share, for the first quarter of 2009, up 44 percent on a year-over-year basis.