If you’re feeling good about the market, you’re not alone. Take my hand as we go over some of this week’s more uplifting headlines.
1. Climbing the wall of worry
Redbox parent Coinstar has a new corporate moniker.
Coinstar began trading as Outerwall Inc (NASDAQ:OUTR) on Tuesday, a name that emphasizes its growing portfolio of automated kiosks along the outer wall of retail establishments.
Growth at Redbox has slowed lately as folks move on from disc-based rentals, and its namesake coin-collecting machines are only a sliver of Outerwall Inc (NASDAQ:OUTR)’s business these days.
However, Outerwall Inc (NASDAQ:OUTR) also announced the acquisition of ecoATM on Tuesday, a fast-growing network of machines that analyze the condition of smartphones, media players, and tablets for recycling. EcoATM machines quickly spit out a quote for new, used, or broken products after analyzing available marketplace options.
At a time of digital delivery, it’s smart to see Outerwall Inc (NASDAQ:OUTR) focus on an underserved market that deals with the necessary hardware behind the media revolution that will ultimately make Redbox less popular. It’s a smart way to hedge its bets.
2. Nokia Corporation (ADR) (NYSE:NOK) is Finnish but not finished
Nokia Corporation (ADR) (NYSE:NOK) hasn’t done a lot to make its way into this weekly column in recent years, but it’s earning a spot this time.
The handset pioneer is cutting a deal with Siemens AG (ADR) (NYSE:SI) to get the 50% stake of the Nokia Corporation (ADR) (NYSE:NOK) Siemens AG (ADR) (NYSE:SI) Networks joint venture.
The move will help Nokia Corporation (ADR) (NYSE:NOK) diversify from the devices and services segment that hasn’t been as profitable for it lately. The company’s also getting a great price since Siemens AG (ADR) (NYSE:SI) didn’t really have a lot of options in lining up a potential buyer for its stake outside of Nokia Corporation (ADR) (NYSE:NOK).
According to The Wall Street Journal‘s Heard on the Street column, Nokia Corporation (ADR) (NYSE:NOK)’s roughly $2.2 billion purchase implies an enterprise value of just 0.2 times sales for Nokia Siemens AG (ADR) (NYSE:SI) Networks. Its closest competitor trades at 0.9 times its enterprise value.
Well played, Nokia.
3. Zynga Inc (NASDAQ:ZNGA) thinks outside of the box, but inside the Xbox Zynga Inc (NASDAQ:ZNGA) is another company that has rarely made the cut in this weekly column, but the leader in social and casual games turned heads by bringing on Xbox’s president to be its new CEO.