I've been bullish on the stock, although I have acknowledged the significant quantity of risk attached to it. After reading through the Q2 numbers, I wasn't completely displeased by them.
However, it doesn't really matter what I think, does it? From the point of view of initiating a trade, it only matters what the market thinks. I've been saying that pullbacks might make the company a possible buy, but that story may have changed.
Honestly, I just didn't like last week's price action. This past Friday, shares of Coinstar dropped over 5% on high volume. It doesn't look good. Although one might believe in the business on a fundamental basis, the chart may be telling us something.
I would not short this stock; doing so could very well be a big mistake. Nevertheless, I can't see going long the equity just yet.
You must make your own decision, of course, but if I held a profit in Coinstar right now, I would realize it and check in on the company at a later point in time. I feel the risk, on a technical basis, has gotten too high.
Disclosure: I don't own any company mentioned; positions can change without notice.