Sun, Mar 1, 2015, 11:35 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Barnes & Noble, Inc. Message Board

  • patch1313 patch1313 Jun 27, 2011 2:04 PM Flag

    Price action says Malone bid wins...?

    So does the retreat to $17 say that Malone's bid now looks like it will be accepted?

    Seems asif the hot money ran for the hills at the sight of another loss-making quarter.

    Anyone got thoughts on how soon the sale may come to a vote and close?

    patch

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • A lot more shares sold during the closing hour than any other time of the day and usually with the greatest percentage drop during the time frame, such actions lead me to speculate that someone is systematically pushing down the price so if a new offer of $19-$23/share comes in, current holders are more willing to accept it.

    • > "So does the retreat to $17 say that Malone's bid now looks like it will be accepted?"

      The retreat to $17 is the realization that there will be no other bidder to raise the bid for BKS. There was nothing surprising in the quarterly report - all of the major trends remained intact with retail store sales declining offset by increase in bn.com sales with losses increasing as higher margin book sales are replaced by much lower margin if not money losing Nook devices sales.

      bn.com which is the target of Liberty Media's bid has annual losses now in the $250m range and still growing rapidly. It's hard to imagine how anyone could believe that bn.com will ever turn a profit let alone produce sufficient return to justify the losses they will accumulate over the next few years.

      To put the size of the losses in perspective, bn.com's gross profit for the past year was just $75m. bn.com's gross profit needs to increase by 433% with no increase in operating costs just to break even. And bn.com's gross profit barely grew at all last year from the $70m in gross profit the previous year.

      I would expect BKS to stabilize somewhere below Liberty Media's $17 bid as the risk of the acquisition falling apart is always present and there's no reason to believe the Liberty or anyone else is going to raise the offer.

      • 3 Replies to netmargin15
      • The May 20th $17 offer for Bks is now over one month stale and no informative comments are being made by the BKS or Malone. And, my understanding is the offer was contingent on financial input from Riggio and the securing of debt that would further leverage a structure that would now include a money losing operation. What is the percent chance that the deal does not occur? That is why is now trading sub $17.
        Just my opinion.

      • "bn.com which is the target of Liberty Media's bid has annual losses now in the $250m range and still growing rapidly. It's hard to imagine how anyone could believe that bn.com will ever turn a profit let alone produce sufficient return to justify the losses they will accumulate over the next few years.

        To put the size of the losses in perspective, bn.com's gross profit for the past year was just $75m. bn.com's gross profit needs to increase by 433% with no increase in operating costs just to break even. And bn.com's gross profit barely grew at all last year from the $70m in gross profit the previous year."

        Wow! That pretty much sums it up. Barnes & Noble has been bleeding cash bad. If it wasn't for Liberty's offer, this stock would be trading at just a few dollars per share again, even lower than where it was a few months ago.

 
BKS
24.90-1.02(-3.94%)Feb 27 4:02 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.