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Rick of Value Discipline is hosting the 12th edition of the Festival of Stocks on his blog this week. The post by George of Fat Pitch Financials about the spin-off company Sally Beauty Holdings (SBH) is a must read. My post about Coinstar was also included in this festival and Rick takes my short analysis of Coinstar (CSTR) further and has provided some Free Cash Flow (FCF) numbers for the last five years. However the FCF numbers I get by using the Cash Flow Statement from Coinstar’s 2005 Annual Report are significantly different from the ones posted by Rick. I plan to check with him to see how he arrived at his numbers. Here are the Free Cash Flow numbers for Coinstar over the last three years based on my calculations,
| Year | Net Income | Free Cash Flow |
| 2005 | $22.27 million | $59.22 |
| 2004 | $20.37 million | $17.81 |
| 2003 | $19.55 million | $28.61 |
As I mentioned in my post about Coinstar, I would not want to short this cash flow positive company but continue to find the $30 Jan 2008 naked LEAP puts (LUDMF.X) attractive.
I may not blog a lot until the end of this month as I get the last investment newsletter of 2006 ready for publishing on December 1st.