I have had several retail stores ,the trouble with gutting the prices is you move product and make no profit ,a death spiral
why the hell would anyone want to date this ugly bia?? I wouldn't even have a one night stand with it...Be careful, the buy low sell high mantra may be working the opposite way here...right now people are buying "high"...btw, how in the world can you justify a mid-20's valuation here for the dead bookstore business? I mean 3x ebitda makes sense maybe, but how do you come that THAT value???
Positive free cash flow is an entitlement of yesteryear for this company. It is BBRY, not BBY; recovery is all but improssible. You will find no "I told you so"-type glory here.
It's too late for Barnes & Noble, and should you choose to anchor and dollar cost average, you will ultimately find yourself in serious trouble.
Full disclosure: I prefer to see those with investing hubris suffer, so I'd rather you didn't exit BKS. But hey, maybe you'll disappoint me.
Sentiment: Strong Sell
He fails to comprehend that BKS need not fund Nook operating losses forever.
In fact, buyers of the stock are buying because they KNOW that BKS won;t fund Nook operating losses forever.
And when they stop funding them, the stock goes into the mid-20s to reflect the value of the rest of the business.
Singy-- Yap all you want, I won;t see it because your idiocy is on "Ignore"
this is a dead company..worth no more than $5 per share. NOOK is dead and no idiot in their right mind would buy it (what moron would want to compete head to head with Amazon with a #$%$ product like the nook lol)...and the brick and mortar business is dead as more and more people buy e-books through their Kindles. $10 after "earnings", which will be another huge loss, and $5 next year after they bleed through all of the cash that MSFT happily donated to them...
Some argue that they should spin off the nook since it's, at least, part of the reason it's trading so low and that BKS isn't profitable. The problem is that BKS needs the Nook to stay relevant. Do you really think they are going to sell ebooks for Kindle? If anything that would make them look weak and foolish. The best bet would be to sell the Nook to a rival of Amazon. But I don't think there's anyone big enough and stupid enough to take on a product that hasn't proven itself a winner.