Better research carefully before buying on this chairman's coattails. The last time he made big purchases was in Oct. 2007. The rough average price (not weighted) of his six days of purchases was $38.078/share, according to Yahoo Finance. Even if you adjust for a 15 cent Dec. 2007 dividend, BKS is far below the $38.078/share the chairman paid in October.
Also, fundamentally, BKS's price/book ratio at last report was 2.09. This is worse than BGP (1.61), BAMM (1.83), and HIST (1.05). It also exceeds the metric used by value investors of the Ben Graham / Warren Buffett school.
Why would you value BKS on price/GAAP book value? I recall reading somewhere that booksellers have artificially high depreciation charges, i.e., their book value is understated relative to intrinsic value. True?
Also, it is my understanding that bookselling is not so capital intensive or at least risky in that unsold merchandise can be put back to the publishers. Also true?