In response to the dividend question. Same 25 cent dividend payable to shareholders of record on December 10th. Payout date of December 31st.
The BestBuy comment is spot on. I noticed the advertising 2 weekends ago. Apparently if we beleive the nay sayers B&N has to be paying BestBuy to take up two different spots in the last two Sunday paper ads I saw AND paying them to take the loss on the product.
Get Real. This this is selling for a BIG profit at $250. The BestBuy I was at on Black Friday was out of them and the guy said they have 4 more shipments of 300 comming in before Christmas. Selling for loss, yeah right.
As far as the dividend is concerned. Your guess is as good as mine. There are two schools of thought.
1) Reduce the dividend (I'm pretty sure they wont cut it completely) which will certainly drop the stock price. But dropping the stock price now is likely a good thing for BKS. It'll bounce back once the digital device/book sales results come in.
2) Keep the dividend the same and continue to report "all is normal", which will put up a good front but people will be doubting.
I'm hoping they reduce the dividend to somewhere around 7cents / share. For the good of the company.
Something occurred to me: There has to be some profit margin in the nook, otherwise, why would Best Buy sell it? I doubt BKS is paying them to carry it as a form of advertising.
I've had my nook color for several days now and think it's absolutely amazing. Like you said, this thing is going to be big for the company this Christmas!
Finally, what are your thoughts on the dividend? CEO Lynch hinted several times that BKS should be viewed as a growth company again and not a cash cow. Generally, growth companies don't yield 6%+ so I'm looking for a cut, if not elimination.
No Youtube, etc., but they're taking up valuable floor space selling toys and games in a bookstore.
Next thing you know BKS will start putting vending machines in their expensive rented floor space.
> "A) The device is not selling for a loss. No matter how much you want to preach it Net."
Of course it is. BN.com gross margin went from 20% last year to almost nothing. The only way that could have happened is because Nook device is selling for huge losses or BN.com is now selling books/ebooks at cost.
And your in ignorance, you imagine that it's somehow related to the proxy fight or Nook R&D costs. Those costs are operating expenses and not part of COGS (cost of goods sold). Gross margin is measuring how much is left after paying for the cost of the products being sold.
Since BN.com book isn't selling books at cost, they have to be selling Nook devices at huge losses for gross margin is be near zero.
All it needs is some Flash and DASH, you've got a rival to the IPAD. My conspiracy theory is that BKS has the ability to Flash this device, but is holding it back until excessive demand subsides. That's what I would do if I were a bookseller in a digital world.