Friday, October 31, 2014

Why Stratasys is the Best Pick in the 3D Printing Industry

Due to its superior presence in the industrial market, and a strong market share, Stratasys (SSYS) has outperformed 3D Systems (DDD) in every way this year. Although Stratasys is down 5% this year, it still has strong prospects and has delivered better quarterly reports than its rivals. On the other hand, 3D Systems has plunged almost 60% in 2014 and has lowered its guidance twice in the span of a few months. The company didn't satisfy the analysts estimates in the previous quarter and has been subjected to multiple downgrades in the past few weeks. Therefore, I think Stratasys is the best bet for investors looking to profit from the 3D printing industry. Let's take a look at the reasons why I think Stratasys will perform nicely in the long run.

Optimistic analysts

The stock was upgraded by several analysts firms like Morgan Stanley and Stephens in the last few months. Analysts at Gartner said Stratasys has an advantage over its peers and the shipment of 3D printers is poised to more than double every year from 2015 to 2018. Gartner expects overall end-user spending on 3D printers to grow from $1.6 billion in 2015 to $13.4 billion in 2018.

Advantages

Stratasys should do nicely in the future as it has a robust position in the industrial 3D printing sector. While the company concentrates on the industrial 3D printing business sector, different organizations are going for the consumer market, which is yet to receive this have a huge impact. The company, in Q1, proclaimed its new frameworks called Objet500 and Connex3, Color Multi-material 3D printer. This is the first and last 3D printer to join shade and multi-material 3D and gimmicks an extraordinary triple plane innovation that permits the client to consolidate color with different consolidations of adaptability and transparency.

Great initiatives

The Stratasys-Objet merger yielded great revenue growth. The acquisition of Makerbot, an organization officially heading internationally in the 3D printing market, has also helped Stratasys. Makerbot increased Stratasys' share in the overall consumer sector, likewise adding to its productivity, which will turn out to be advantageous for its long haul development.

The Makerbot stage incorporates three new fifth era Makerbot replicator 3D printers - the Makerbot Replicator Desktop 3D printer, Makerbot Replicator Mini Compact 3D printer, and Makerbot Replicator Z18 3D printer. The Makerbot Replicator Mini won the CES 2014 Editors' Choice Award from Popular Mechanics, the CES 2014 Best in Show honor by Digital Trends and Zdnet and was named the Best of CES 2014.

Conclusion

Given the factors mentioned above, Stratasys is set to dominate the 3D printing industry. The company has performed very nicely this year and has a strong presence in the industrial sector. The company is also expanding its footprints in the customer segment as well. Thus, I think Stratasys is the best pick in the 3D printing industry.

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Tuesday, October 28, 2014

Vertex Pharmaceuticals Incorporated Plays the Earnings Waiting Game

Sales of Vertex Pharmaceuticals' (NASDAQ: VRTX  ) cystic fibrosis drug, Kalydeco, increased 25% year over year in the third quarter, but that's nothing compared with the sales potential for its cystic fibrosis drug franchise.

It just has to get the drugs approved and persuade countries to pay for it.

Source: Vertex Pharmaceuticals.

About 2,600 patients are currently eligible for reimbursement for Kalydeco, but Vertex Pharmaceuticals is working toward getting the drug approved to treat additional mutations and gain reimbursement coverage, which should bring that number to around 4,000 patients.

In the U.S., the FDA approved its use in eight additional mutations earlier this year, which accounts for much of the third-quarter growth. In Europe, sales increased as coverage for the G551D came online. The third-quarter sales also benefited from a one-time $7 million bump as Vertex expanded its distribution network in anticipation of expanding on its cystic fibrosis drug franchise. Keep those sales in mind when comparing quarter-over-quarter sales in the fourth quarter.

To get to around 4,000 patients eligible for Kalydeco, Vertex needs the FDA to approve the drug for use in patients with the R117H mutation. Last week an FDA advisory committee voted 13-2 recommending that Kalydeco be approved to treat patients with the R117H mutation. If the FDA follows its outside experts' advice, the drug could be approved on or before its PDUFA date of Dec. 30. Combined with the EU -- where an application is also pending -- and Australia, the R117H mutation could add another 1,100 patients or more.

Kalydeco is also up for approval in the U.S. and EU to treat patients aged 2-5, which could expand its use by another 300 patients.

Expanding from 2,600 patients to 4,000 patients sounds like a lot until you look at the 28,000 patients who could be eligible for treatment with Kalydeco combined with ivacaftor. After releasing positive phase 3 data earlier this year, Vertex is on track to file marketing applications for the combination with the FDA and EU regulators this quarter, which could result in a U.S. approval in the middle of next year and approval in the EU a little bit after that.

If regulators approve the drugs for all the new indications and payers agree to cover the drugs, Vertex is going to look like a much different company a year from now. Until then, investors will have to settle for only a 25% increase in sales.

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Monday, October 27, 2014

Dividend Aristocrats In Focus Part 29

In Part 29 of the 54 part Dividend Aristocrats In Focus series, I take a closer look at corporate uniform provider Cintas (CTAS). Cintas designs, manufactures and implements corporate uniform plans. The company also sells various business products including restroom supplies, fire protection and first aid products as well as document management and safety services. The company went public in 1983 and has increased its dividend each year since that time, for a streak of 31 consecutive years with increasing dividends. Cintas has a market cap of $8.3 billion, making it smaller than many of the other Dividend Aristocrats previously analyzed. The company's business operations are detailed below.

Business overview

Cintas breaks its operations down into four segments. Each segment is shown below, along with percentage of total revenue generated from each segment.

Rental Uniforms & Ancillary Products: 70.8% of total revenue Uniform Direct Sales: 10% of total revenue First Aid, Safety, & Fire Protection Services: 11.3% of total revenue Document Management Services: 7.9% of total revenue

The company generates the bulk of its revenue from its rental uniform business which is at the core of what Cintas is. Its other business units are secondary and get a 'leg in the door' when a business already has a rental uniform agreement with Cintas.

Competitive advantage

Cintas corporations competitive advantage comes from its network of uniform processing facilities spread primarily across North America. The company currently has 391 facilities which it either owns or leases. This includes its 164 rental processing facilities and 110 rental branches, as well as its 8 distribution facilities and 5 manufacturing facilities. Cintas' strong distribution and service network for supplying and laundering uniforms is difficult to replicate for competitors. It would require a large amount of up-front capital to compete effectively with Cintas in business uniform services in North America.

Growth prospects

Cintas has grown revenue per share at nearly 7% per year over the last decade. The company has reduced its share count by about 3.7% per year over the last decade. The company's commitment to share repurchases has helped Cintas realize a strong revenue per share and dividend per share growth rate.

Going forward, Cintas will likely continue to grow at about the same pace it has over the last decade. The company's long-term organic growth is in line with overall business growth in the U.S. Demand for uniform services somewhat tracks the overall economy. As businesses prosper, they hire more employees and need more laundering services. When the economy contracts, employees are laid off, and less laundering is required.

Overall, shareholders can expect a CAGR of between 7% and 9% going forward from dividends (~1%) and organic growth (6% to 8%). The company may be able to grow more quickly by realizing efficiency gains as it continues to grow its size. Additionally, add-on acquisitions (none announced at this time) could also boost shareholder CAGR faster than the high single digit projections above.

Dividend Analysis

Cintas currently has a dividend yield of about 1.2%. The company has a low payout ratio of around 30%. Cintas' dividend payments are in no danger of being cut due to the company's low payout ratio and consistent growth. The company's fairly low yield and payout ratio are somewhat misleading, as management rewards shareholders with strong share repurchases rather than dividends. If the company

Cintas recently announced a special dividend of $1.70 (about 2.4% yield at current prices) payable to shareholders of record as of November 7. The special dividend is due to the company's deal with Shred-It-International to combine their document management business into a new joint-venture. The joint venture will be owned 42% by Cintas and 58% by Shred-It International. Shred-It also paid Cintas $180 million in the deal, which is the source of the special dividend funds. The joint-venture will improve Cintas' document management and destruction capabilities while providing the company with greater international exposure. While not immediately accretive to EPS, the acquisition is a solid long-term strategic move.

Going forward, Cintas will likely raise its dividend payments slightly faster than overall company growth due to its fairly low payout ratio. I expect dividend per share growth of around 10% a year over the next several years due to growth and modest payout ratio expansion. Despite solid dividend growth, the company's low yield makes it unappealing for investors seeking current income.

Valuation

Cintas has historically traded at a premium of about 1.1x to the S&P500's valuation multiple. This is likely due to the company's competitive advantage and solid long-term growth. Cintas currently has a PE ratio of about 23.7, versus the S&P500's current PE ratio of about 19. Using the 1.1x premium multiplier, Cintas should be trading at a PE ratio of around 21 at current market prices. If the S&P 500 reverts to its historical average PE ratio of about 15, Cintas fair value would be around 16.5. At current market prices, Cintas appears somewhat overvalued. The company is not expected to grow rapidly, and has a fairly low yield. Its high premium over the S&P 500's PE ratio does not appear to be fully warranted.

Recession performance

Cintas remained profitable through the Great Recession of 2007 to 2009. As mentioned earlier in this article, the company's growth tracks overall economic activity. As a result, Cintas saw significant downturns in its EPS in 2009 at the peak of the Great Recession of 2007 to 2009. The company's EPS for 2007 to 2012 are shown below to give you an idea of how long it took the company to recover to new EPS highs after the Great Recession:

2007 EPS of $2.09 2008 EPS of $2.15 2009 EPS of $1.83 2010 EPS of $1.49 20

Sunday, October 26, 2014

FTC Bans Diet Pill Seller from the Weight-Loss Business

Fat man holding a measuring tape. Weight Loss. kurhan/Shutterstock The maker of a line of diet supplements sold at the nation's largest pharmacies with the false promise that the pills would magically make users slender (they didn't) was banned -- at least, for now -- from selling weight loss products under a just-finalized agreement, the Federal Trade Commission said on Friday. HealthyLife Sciences and its principal sold Healthe Trim supplements with the claim you could "get high school skinny." Apparently, it only worked as advertised if its users had never gained weight after graduation. John Matthew Dwyer III (aka Matthew Dyer), the co-founder of the Atlanta-based company, agreed to stay out of the weight-loss industry under the terms of the settlement of deceptive advertising charges. Dwyer claimed the pills had ingredients that combined to burn fat, speed up the metabolism and suppress appetite. No Penalty, No Restitution The FTC said the company took in about $76 million between 2009 and 2013. Healthe Trim supplements were sold at CVS (CVS), Walgreens (WAG) and at GNC (GNC) stores. It cost consumers who bought into the spiel $50 to $65 for a month's supply, the FTC said. The key to the sales were customer testimonials featuring claims that, for example, using the pills helped one user to drop 54 pounds and go from a size 12 dress to a size 2. "Losing weight is rarely easy, and it would be a miracle if a pill made it so," Jessica Rich, director of the FTC's Bureau of Consumer Protection, said in a statement. "Consumers should be skeptical when a product like this one claims to make weight loss easy." The company itself (if it continues to operate without Dwyer) is barred from making a host of what the FTC describes as "scientifically infeasible" claims about its supplements. And it can no longer make any weight-loss-related claims at all about them until it has in hand two legitimate, scientifically rigorous human clinical-trial studies to support its statements. Unlike many settlements of this type, there is no financial penalty and no provision for consumer restitution. More from Mitch Lipka
•Texting Scammers to Pay $10 Million to Settle FTC Suit •The Plague of Ebola-Related Scams Is Spreading Like a Virus •Costco Flat Screen Wall Mounts Recalled Because TVs Can Fall

Friday, October 24, 2014

United Parcel Service, Inc. Reports Higher Q3 Results; Expects Better Holiday Season (UPS)

Before Friday’s opening bell, United Parcel Service, Inc. (UPS) released its third quarter results and its outlook for the holiday season and full-year 2014.

UPS Earnings in Brief

UPS reported third quarter earnings of $1.214 billion, or $1.32 per share, up from $1.097 billion, or $1.16 per share a year ago. Revenue rose to $14.29 billion, from $13.52 billion. On average, analysts expected to see EPS of $1.29 and $14.20 billion in revenue. For the upcoming holiday seasons, the company expects to see shipments rise 11% from last year. Looking forward, UPS expects to see FY2014 EPS in the range of $4.90 to $5.00 per share. Analysts expect to see $4.95 per share in earnings.

UPS Dividend

UPS paid its last 67 cent dividend on September 3. We expect the company to declare its next dividend in the beginning of November.

UPS Dividend Snapshot

As of 12:09pm on Oct 23, 2014


UPS dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of UPS dividends.

United Parcel Service shares were up $1.42, or 1.41% during premarket trading Friday. The stock is down 4.38% YTD.

Thursday, October 23, 2014

Top Performing Industries For October 23, 2014

Related BBW Morning Market Movers Earnings Scheduled For October 23, 2014 Related CLGX Top 4 Stocks In The Processing Systems & Products Industry With The Highest Revenue CoreLogic Reports 946K Residential Properties Regained $1T In Total Equity in Q2 2014

At 10:30 am, the Dow gained 1.41% to 16,692.53, the broader Standard & Poor's 500 index moved up 1.25% to 1,951.11 and the NASDAQ composite index rose 1.45% to 4,446.45.

The industries that are driving the market today are:

Toy & Hobby Stores: The industry gained 19.58% by 10:30 am. The top performer in this industry was Build-A-Bear Workshop (NYSE: BBW), which gained 19%. Build-A-Bear reported upbeat quarterly results.

Processing Systems & Products: This industry moved up 5.91% by 10:30 am. The top performer in this industry was CoreLogic (NYSE: CLGX), which gained 8.7%. CoreLogic reported better-than-expected quarterly results.

Drug Delivery: This industry jumped 5.34% by 10:30 am. The top performer in this industry was IntelliPharmaCeutics International (NASDAQ: IPCI), which rose 2.9%. Intellipharmaceutics reported positive results from a series of Phase I clinical trials of Regabatin.

Auto Parts Stores: This industry rose 4.51% by 10:30 am ET. The top performer in this industry was O'Reilly Automotive (NASDAQ: ORLY), which gained 7.1%. O'Reilly reported stronger-than-expected Q3 earnings.

Posted-In: Top Performing IndustriesNews Intraday Update Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Related Articles (BBW + CLGX) Top Performing Industries For October 23, 2014 Morning Market Movers Earnings Scheduled For October 23, 2014 Top 4 Stocks In The Processing Systems & Products Industry With The Highest Revenue Worst Performing Industries For October 9, 2014 CoreLogic Reports 946K Residential Properties Regained $1T In Total Equity in Q2 2014

Sunday, October 19, 2014

Lawsuit: CME aided high-frequency traders

Three traders have accused the world's largest futures market of letting high-frequency traders get an improper advance look at price and market data and execute trades using the data before other market participants.

In a federal lawsuit seeking class-action status, the traders alleged that the CME Group secretly maintained the practice from 2007 through this month and financially victimized an untold number of market participants by engaging in "a fraud on the marketplace."

The traders charged that CME, owner of the Chicago Mercantile Exchange and Chicago Board of Trade, falsely assured all market participants that their exchange fees and data-fees gave them access to financial data "in real time."

But high-frequency traders, equipped with powerful computing equipment that can receive and execute trades on financial data in tiny fractions of a second, got the market information before anyone else, according to the April 11 lawsuit filed in the Northern District of Illinois.

By allowing the procedure and failing to disclose it to all traders, the CME "institutionalized market manipulation and created an opaque and hidden marketplace for financial futures," the lawsuit charged.

The case was filed amid government and regulatory probes examining whether high-frequency traders have an unfair edge over competitors. The investigations have gained increased public focus with last month's publication of "Flash Boys," a critical examination of high-frequency trading by author Michael Lewis.

In response, the CME Group said the lawsuit was "devoid of any facts supporting the allegations" and demonstrated "a fundamental misunderstanding of how our markets operate."

"It is sad when plaintiffs' lawyers bring a suit based on a desire for publicity, and in the rush to file a suit fail to undertake even the most basic effort to determine if there is any basis for their allegations," said the CME Group, calling the case "without merit."

The lawsuit was filed on behalf of fu! tures traders William Braman, Mark Mendelson and John Simms, but seeks class-action status to represent other market participants allegedly damaged by preferential treatment of high-frequency trading.

The action accuses the CME Group of fraud, fraudulent concealment, market manipulation and disseminating false information. It seeks unspecified compensation for financial damages.

Wednesday, October 15, 2014

Finding Value in an Investment Management Firm

Using GuruFocus' Ben Graham Net-Net screener, I found a list of companies that could adhere to Ben Graham's stringent rules for businesses he would potentially add to his portfolio. I then excluded OTC stocks in order to find companies within a liquid market. Next, I sorted each company by operating cash flow per share in order to find companies that are generating a healthy amount of cash and can pay a dividend. This stock was at the top of the list.

Business Description

Manning and Napier Inc. (MN) is an investment management firm involved in providing financial solutions for individual and institutional clients. Since 1970, MN has been offering portfolios with different asset classes, such as equity and fixed income, to clients with various accounts including seperately managed accounts, 401(k) plans, pension plans, endowments, and even foundations. For these services, clients pay a fee, and this is the way MN generates revenue.

What Matters Most: Cash Money

Before we talk about the company's cash holdings and ratios, I think it's important to talk about its debt. What makes this company stand out is the fact that it has no debt on its balance sheet. This means that the company could potentially give a higher dividend to investors or reinvest their cash to grow the business even further. They do have a line of credit, but this hasn't caused any significant financial hardship when paying off whatever is borrowed. MN has $125 million in cash, which is a great sign. Their current ratio is 3.17, which is amazing since MN can pay off everything it will owe this year more than three times over. Free cash flow is $166 million, or $12.10 per share, which shows that this company generates a substantial amount of cash. With a P/FCF of 1.46, this company is definitely under my criteria for investing in companies with a P/FCF ratio of 15 or less, and may purchase shares of MN.

Dividends - The privilege of ownership

I like to invest in companies that pay a dividend in order to reduce my risk, earn a return on my capital invested, and reinvest those dividend payments into a snowball of dividend checks. Although I am not currently investing in MN, it could become a holding in my portfolio if the dividend stream is worth paying for, and I think investors should have the same outlook when looking for potential investments. MN currently has a dividend yield of 4%; they pay $0.16 quarterly, totaling $0.64 a year. The payout ratio when compared to earnings is 313%, which would be very alarming. Dividends are paid out through cash, so I like to use free cash flow per share instead of earnings when calculating the payout ratio. When compared with free cash flow, the payout ratio is just 5%, which tells me that the company is generating enough cash to significantly increase its dividend payments. I like to do some calculations to see how long it would take one share of a company's dividend payments to equal another share, if prices remained the same and dividend payments were held for the sole purpose of buying one more share, with no compunding. It would take 25 years for one share to become two MN shares with the current level of dividend payments. I also like to calculate how many shares an investor would need to buy now in order to generate the equivalent of one share in dividend payments a year, all else being equal. Its interesting to note that if an investor wanted to generate the cash in dividend payments for one share this year, it is equal to the amount of time it would take for one share to double from its dividend yield. Buying 25 shares would result in an extra share at the end of the year, generated by passive dividend income.

Book Value - Real Company Value

MN's P/B ratio is 1.3, meaning it is priced almost one and a third times its actual value. I personally like to invest in companies with a P/B ratio of 2 or less, and in some cases I'll invest in companies with a higher P/B if the income stream of dividends is worth paying more for it. This is a good sign and a potential buy signal, considering its dividend income stream. Its really dificult to find companies trading at or below book value, so this is a major plus.

Income - How well a company is managed

I normally don't like to rely on the income statement as a measure of value. I do think it offers the best glimpse of how well a company is able to manage it's expenses while generating revenue, but I'll rely more on the cash flow statement to find value. The P/E ratio is 74.3. Most people invest in companies that have a P/E ratio between 15 and 25, while companies with a P/E ratio of 20 are seen as fairly valued. Honestly, I don't care too much about P/E ratios, but it can help me gauge whether or not I can pass up on a company that is priced too high, and look for other companies. A P/E ratio of 74.3 does set off alarm bells, and could be a sign that the company isn't able to manage its expenses. With a margin of 100%, and operating margin of 22.5% and a n

Sunday, October 12, 2014

Fed Minutes Show Extended Debate on Rate Guidance

Federal Reserve Board Holds Open Meeting As Banks Get Two More Years to Meet Volcker CLO Standards Andrew Harrer/Bloomberg via Getty ImagesFederal Reserve Chair Janet Yellen WASHINGTON -- The Federal Reserve struggled last month over how to convey to investors the pace at which it will raise short-term interest rates once it increases them from record lows. Two weeks before the Fed's regular meeting March 18-19, it held an unusual and previously unannounced videoconference to debate the issue, according to minutes of the meeting released Wednesday. In the end, the Fed settled on an open-ended approach: That even after employment and inflation are nearly back to normal, short-term rates may need to stay unusually low for a while because the economy isn't fully healthy. Stock and bond investors read the minutes to signal that the Fed plans to favor low short-term rates longer than many had assumed. Stocks rose sharply after the minutes were released, and bond yields fell. The Dow Jones industrial average, which had risen modestly before the minutes were released, was up 154 points 30 minutes later. Investors have been intensely following the Fed's guidance on rates because higher short-term rates would elevate borrowing costs and could hurt stock prices. The minutes covered the first Fed meeting at which Yellen presided as well as the March 4 videoconference. At both sessions, the issue of the language the Fed uses in its statements to signal the timing of future policy actions was a topic of extended debate. The Fed has kept its key short-term rate at a record low near zero since December 2008. It made no change to that rate at the March meeting. But it dropped language from its statement that had previously said this rate would likely remain low "well past" the time unemployment fell below 6.5 percent. Instead, the Fed said it would review a "wide range of information" before starting to raise rates. It repeated language that it expected to keep rates low for a "considerable time" after it stops buying bonds. Also at the March meeting, the Fed approved another cut in its monthly bond purchases of $10 billion to $55 billion a month. Those purchases are intended to keep long-term loans rates low to spur borrowing, spending and economic growth. The monthly purchases had been held at a level of $85 billion a month all last year. The Fed announced an initial $10 billion cut in December and another in January. Many economists think the Fed will keep reducing the bond purchases by $10 billion at each meeting this year before ending them altogether late this year. Asked at a news conference after the Fed's meeting last month to define a "considerable time," Yellen said it "probably means something on the order of six months." Her remark jolted markets. It seemed to signal that the first rate hike could occur next spring, sooner than many investors had been expecting. But in a speech March 31, Yellen made clear that she thought the job market was still far from healthy and would need the help of low rates "for some time" to come. The minutes issued Wednesday seemed to confirm that short-term rates will likely remain low for a considerable time, even after the Fed has begun to raise rates.

Saturday, October 11, 2014

3 Reasons Why Netflix Killed Redbox Instant

Another potential Netflix (NASDAQ: NFLX  ) challenger bites the dust. Verizon (NYSE: VZ  ) and Redbox parent Outerwall (NASDAQ: OUTR  )  shut down Redbox Instant on Tuesday. The platform that rolled out in beta in late 2012 before launching nationally early last year never really had a chance.

I wasn't the only one that figured that the service would be doomed from the start. A lot of people figured that it was on borrowed time before it began streaming. Let's go over a few of the reasons why Verizon and Outerwall never stood a chance in this expanding yet challenging market.

1. Redbox Instant arrived too late
You don't have to be the first disruptor on the scene to succeed, but you aren't likely to succeed if you're one of the last to arrive. Outerwall and Verizon should've known better. Redbox is the leading DVD rental chain, thriving at a time when Blockbuster folded and even Netflix has shed millions of disc-based subscribers. Verizon is a wireless giant, fully aware that mobile video streaming is a major component of smartphone and connected tablet usage.

Outerwall can only blame itself. It was promising investors that it would be rolling out a digital strategy more than four years ago. It kept pushing out the deadline. By late 2011 reports had Verizon and Redbox joining forces to make up for lost time. The partnership was confirmed in February 2012, but the platform didn't begin taking paying customers until early 2013. By then it was too late. Tens of millions of video buffs flocked to Netflix and Amazon.com (NASDAQ: AMZN  ) between the time when Outerwall was promising a platform and its ultimate arrival. 

2. Selection was a joke
You can't draw an audience without making a major investment in content. Netflix had $7.7 billion -- yes, billion -- in streaming content obligations as of the end of June. Amazon isn't as candid, but it has a healthy slate of content and originals that is not available on Netflix.

What did Redbox Instant bring to the table? Just for austerity's sake, let's single out the five most popular streams according to the site's "top subscriptions" as of Tuesday afternoon.

Grace Unplugged All is Lost The Big Wedding Black Rock The Frozen Ground 

It's a pretty obscure lot. The five films combined for roughly $30 million in domestic box office receipts according to BoxOfficeMojo.com. 

Redbox Instant also emphasized movies at a time when binge viewing of earlier seasons of TV shows make up a good chunk of the Amazon Prime Instant and Netflix viewing experience. In short, it was never going to work.

3. Redbox Instant was an inconvenient gateway drug
Outerwall has always been a kiosk operator. Its Redbox machines crank out DVDs, Blu-ray discs, and video games. Its Coinstar kiosks turn coins into store credit. If it seems as if it was dragging its feet to initiate its digital strategy in the first place, it's because Outerwall knew that if Redbox Instant was too successful, it could cannibalize physical disc rentals.

Outerwall tried. Redbox Instant came with four nightly Redbox kiosk credits. However, even with Netflix and Amazon Prime increasing rates for new subscribers earlier this year the value proposition of Redbox Instant failed to resonate with consumers because Outerwall and Verizon weren't putting serious muscle behind the initiative. 

Unlike Netflix, which chose to burn its boats when it decided to tackle streaming, forgoing its cash cow DVD business in the pursuit of being the leader in digital delivery, Redbox Instant came off as almost a belated afterthought. Whether Outerwall was afraid of Redbox Instant becoming too successful or not, it just never armed it with the content library and promotional muscle necessary to make it work. 

Don't shed a tear for Redbox Instant. Outerwall and Verizon never gave it a chance to matter.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: Netflix isn't one of them.