Wait! Don't smash that self-checkout machine

The common kiosks frustrate shoppers, but you can make some money by investing in them.

By Kim Peterson Feb 3, 2010 2:47PM
Groceries © Tom Grill/CorbisThe self-serve kiosks at store checkouts drive me bonkers, yet I still use them. Why?

Because I hate waiting, and when I see a long line for a human cashier but no line for the automated checkout, it gets me every time. I hope against hope that I won't have to call for help when the system doesn't recognize a bagged item or when the price scans incorrectly or when I buy wine or when I can't find the darn code for oyster mushrooms. And I'm usually wrong.

So did I cheer, just a little, when one man smashed a kiosk with a crowbar? Ahem. At any rate, these little monsters aren't going away. So how about getting even by investing in them? Investopedia lists some ways.

First off, this trend is big. Nearly $6 billion will be spent on these systems by 2013, and retailers that use them could generate $1.3 trillion from the technology, according to Investopedia.

I have no idea how someone could estimate this, but you can see how these numbers would appeal to retailers that operate on razor-thin margins.

One heavyweight in this business is NCR (NCR), which has systems in Wal-Mart (WMT), Home Depot (HD) and other retailing giants. Most recently, NCR has been working with Blockbuster (BBI) to place DVD rental kiosks in supermarkets. Blockbuster is going after Redbox, which is owned by Coinstar (CSTR).

After falling below the $10 mark in December, NCR shares have been on a march and recently crossed into the $12 range. Shares have been dragged down by $1 billion in underfunded pensions at the company, according to Reuters. Investors will just start to see the results of NCR's DVD kiosk initiative this year.

McDonald's (MCD) has successfully tested self-serve kiosks in Europe made by Wincor Nixdorf (WNXDF), according to Investopedia. Now the fast-food chain plans to roll out the technology to 2,000 European stores.

One way to play this, according to Investopedia, is to invest in WisdomTree International Technology Sector ETF (DBT), which includes Wincor Nixdorf in its 58 stock holdings.

Finally, Zoom Systems is also developing the technology and was picked by Apple (AAPL) and Rosetta Stone (RST) to build kiosks for airports and other places.

Although Zoom Systems is privately held, it does partner with Motorola (MOT) and Goldman Sachs (GS), Investopedia reports.


4Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

131
131 rated 1
268
268 rated 2
459
459 rated 3
583
583 rated 4
668
668 rated 5
589
589 rated 6
670
670 rated 7
430
430 rated 8
258
258 rated 9
140
140 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ABTAbbott Laboratories10
AIGAmerican International Group Inc10
AMTDTD Ameritrade Holding Corp10
ATVIActivision Blizzard Inc10
CACA Inc10
More
Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.