Outerwall, Buybacks, and Activists

Posted on 13 CommentsPosted in Case Studies, General Thoughts

Outerwall is a stock that has been struggling as the cash flows from Red Box are drying up much faster than investors have expected. Not only that, but Outerwall management has had the troubling habit of throwing good money after bad by “investing” in things like ecoATM–kiosks that allow you to turn in your old cell phones for cash, a concept that doesn’t seem to be gaining traction. This spending on business lines that were unlikely to succeed was all in an […]