Conference call from last earning, digital books are the ones making real money
Please listen to it again, also, NOOK is not a lost leader, it has 30% - 40% profit margin. The cost of Nookcolor is below $80. For those who spread rumors about Nook is a lost leader or digital sales hurt book sales, you didn't do enough DD, listen to the conference call again. Also, listen to Amazon's conference call. Amazon's most profit margin comes from digital book sales. No shipping, no paper. B&N doesn't make money on book ( in store ) sales, the store sales margin comes from games, childress's department, calendar, etc. Again, please listen to conference call before shorting a stock base upon your own estimation.
I think there will be a lot of demand for NookColor especially from people who wants to have android tablet since NookColor is the cheapest Android tablet out there at the moment. BKS should unlock the NookColor to fully become an android tablet but if they are not willing to do it, there are a lot of information how to root a nookColor by yourself on the internet. I would think BKS will sell a lot more NookColor if people knows that they can play Android popular apps like AngryBirds on a NookColor.
Conference calls might seem like a good way to gather information, but it's really not that useful. Certainly in your case, they've led you to gather a lot of misinformation. You should spend more time looking at the SEC filings - 10-Q/10-K. Those have hard numbers more useful for analysis than "better than expected" type of non-informational statements that sometimes are just misleading.
If you're interested in reading some analysis on Nook margins and book sales, here are a couple that I wrote up a while back.