Last night in after hours trading Coinstar (owner of Redbox) dropped a precipitous 23% on news that 4Q earnings, which will be reported on Feb 2, will be significantly lower than they had estimated.

I will certainly not try to spin this into anything positive, it's bad news, but it is just one quarter.  Perhaps the product mix was not right, and perhaps the 28-day window did indeed hurt them.  Blockbuster Express (NCR) has made a real marketing blitz so it's quite possible they stole some market share.

But I am just as bullish as ever, and I think this dip represents a fine buying opportunity.  Probably an excellent buying opportunity.

No real recovery will happen before next earnings, but I would assume the stock will melt up from that point.

A note about PT and covering the same stock more than once.  You can have two open coverages about the same stock as long as they are very different timeframes.  So this is only about a month, whereas I still have open one for the whole of 2011.