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Barnes & Noble, Inc. Message Board

  • slader801 slader801 Jul 17, 2010 11:41 AM Flag

    Book Value of $16.19?

    Yahoo says the book value per share is $16.19 and this is trading around 20-25% below book value with an 8 percent dividend?

    And a billionaire wanted to pay $25 a share to substantially increase his ownership of this company, now you can get it for half of what he wanted to pay for it? Doesn't it seem like any day now the share price has a couple bucks to gain?

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    • WOW you are naive!! -
      This is how a company is taken private when the majority does not want to pay to take it private.

      They are collecting the value of the shares with dividends based on debt - This money is going into a war chest-

      the quick ratio is .20!!
      The current ratio is just 1

      Ask your broker what that means!

      It means that they are quickly approaching the point of being unable to generate enough cash flow to meet present expenses -

      What follows that is a spiral that typically ends in Bankruptcy - Which will put the Majority share holders in a really good position to maintain some equity.

      This is how a company is taken private when the majority does not want to pay to take it private.

      They will make another loan that will be written to be a senior debt.

      Then during BK - there will be a reorganizing that will include share holders losing all equity - Look at almost EVERY single BK on wall St- WOW, seriously you really need to spend some serious time researching the people you are trusting with your hard earned money...



    • Shares are shares, the riggio's aren't going to trash the value on purpose if they hold more than 30%. That makes no sense.

    • Well That's an intelligent reply- care to elaborate?

    • You are just flat wrong

    • I agree!!
      That's what I keep saying -


      GL TO ALL

    • > "One thing is certain, the textbook business makes all their money from august-january so that portion of B.Noble's business will be on fire with cash starting real soon."

      That's why I kept using trailing 12-month figures - that includes both the good times along with the bad. On a trailing 12-month basis, BKS is going to have negative earnings and free cash flow with the next quarterly report. And it should remain that way for the foreseeable future.

    • He certainly seems to be salivating- but again, even if he bought every single minority share, the Riggios & CEO have at least 52% interest, and perhaps more!!


      GL TO ALL

    • One thing is certain, the textbook business makes all their money from august-january so that portion of B.Noble's business will be on fire with cash starting real soon. That will be crucial to their cashflow. They will see huge spikes in cash when they sell books in the fall (Aug-Sep) and Winter (Dec-Jan). Their online marketplace combined with all their college stores (for textbooks) are a shoe in for profit regardless of how bad the economy gets.

      I believe with their high level of textbook involvement, it will keep the dividend safer in the short term. If 2011 goes bad, then it won't be enough to keep the dividend 4th quarter 2011.

      Another question is how much is this company worth to burkle? Certainly he must be salivating over record low prices as of late?

    • > "Numbers from what I said earlier. Our Cash from operating was 128.23 million dollars last year, or about 2.30$ per-share. This baby is selling at five and a quarter times free cash flow. Talk about CHEAP from a value standpoint! Factor in over 8% dividend and you have a hell of a deal."

      Free cash flow includes capital expenditures. Subtracting -127.78m in capex from operating cash flow for last year, free cash flow was $450k. BKS is trading for something around 1600 times free cash flow. BKS essentially didn't generate any cash last year despite cutting back significantly on capital expenditures. The cash for the dividend had to be obtained from borrowing money.

      And BKS is forecasting significant losses for Q1 compared to a profit in the same quarter last year. So trailing 12-month earnings and free cash flow will be significantly negative after the next quarterly report.

    • did you see that category "intangibles" ????

      great song...Intangible Assets...
      memories are made from this?

      ha, ha, ha...


      • 1 Reply to geomessenger_2000
      • Something to think about with the intangibles and goodwill is that they are amortized and written off, but the cash flow is very real for the company.

        Look at last quarter. 56.7 million written off from depreciation and amortization. That is cash that is written off, but actually exists. That's a dollar per share PER QUARTER that isn't shown as earnings.

        Now depreciation is on things that need to be replaced eventually, but there is a lot of "Blue sky" on the books at Barnes & Noble that is being written off, but considering that is writing off actual cash-flow that will never be needed to service old equipment it makes actual cash flow look quite a bit better.

        Don't let the shorts scare you. This is clearly under-valued at these levels.

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19.49+0.41(+2.15%)Oct 21 4:03 PMEDT

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