I have been out of the markets for 3 years and have been thinking about a return soon. I recently bought a Nook and really like it and I like the BKS organization. I have this on my short list for my big return but have been busy and cannot do my DD today so I thought I would ask. What the heck is going on? I thank in advance for any serious comments. Bashers and pumpers please do not reply.
1. The company overpayed for the College booksellers acquisition.
2. The e-book market has no transparency whatsoever.
The first point is really a one-time loss, and the impact should diminish over time.
The second point should be clarified in the next year or so when e-books become more than 10% of BKS revenue and we start getting to see actual sales numbers. Although I sincerely doubt that e-books will ever become more than 10% of Amazon/ Apple/ Google revenues, so investors do have to contend with boogeyman competitors.