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No. of Recommendations: 1
Wow! Took me awhile to find this board. Since CSTR is now OUTR I thought the board would be converted or something.

Anyway, I just heard about the dutch auction tender offer made by the board to buyback $350,000,000 worth of stock. As I understand it I can call my broker and tell them to take no less than $xx for the stock and see if it gets purchased. I guess I could offer the max (~$76) but I'm leaning toward holding.

1) I've already sold a portion of my holding giving me back my full principle. I know this is not a good way to value a stock but its a great way to sleep at night.

2) PE's are still very reasonable.

3) This article makes some good points about why the DVD isn't necessarily dead. It's interesting how I see myself described in some of the customer behavior suggested in the article.

4) This buyback is a result of a push by Jana Partners who owns 13.5% of the stock. I would suspect they aren't tendering any of their shares and expect more value to be returned to shareholders. This article was of interest. "… OUTR's outstanding share count [could] be roughly 30% lower in three years. According to media reports, Jana believes this is a positive first step but will continue to explore a strategic review of the company."

5) Cash flow is being pumped back into other ventures at a rate that still allows for these share repurchases. Thats pretty strong cash flow, one that I don't mind hanging onto for a while to see if some of it comes my way.

I'd love to hear others' thoughts on this stock. Especially in regards to the stock buyback.
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