1) The BKS NOOK ownership position has two sides to it. Yes cash investment has been accumulated by selling 21.8% of the division without a spinoff. But now that depletes the value of BKS by way of a diminished ownership position in NOOK when and if any spin off ever occurs is further put off .
2) NOOK Selling and adminstrative costs continue to be out of reasonable control vs. profit margin. Source is from BKS and subsidiaries" segment information" in the posted 11/29/2013 document for the period ending Oct. 27, 2012 that was included in the results reported and released for the last quarter. GOOGLE it or I suggest go to the BKS investors press release site.
3) The stores I've visited are poorly merchandising NOOK.
4) I see Barnes And Noble 's online site as poor, sloppy and disinteresting as well.
5) I don't believe BKS can see past their nose with product development. So much has been anticipated in tech over the past year. It's been a year of ""Who will next do what when or with who""????? And so much is changing daily and it will rapidly continue. There are immediate simple steps in the natural forward direction of progress to update the current product base that would cause organic synergies immediately and open up business to business synergy oppertunities to expand partnerships and revenue. But BKS seems to appear too "Pig Headed" to believe their is a possibility that they do not have tunnel vision. BKS does not seem to even know how to truly take full advantage of the MSFT partnership because they are stuck in their own rut. MSFT is key. And not for cash.
6) When BKS produces a version of the next big thing, it will be a late attempt to present a version of an already existing product. Not only that, if BKS had moved in time, they might have netted a big fish with it.
7) As an investor and by necessity due to BKS volatilaty, an occasional trader in BKS, I am beginning to wonder if this company is run by egotisticol fools that scoff at any outside help because of egos or if this is just their Bessie the milk cow to continue to milk until she's dried up due to the inablity to calf and is only good for being ground into hambuger or pet food..
In my opinion they are spitting in the face of opportunity and fresh ideas as I write this. I have two e-mails to make that point from my view point.
The next new thing is about to come out soon in a much less impressive form than BKS had or perhaps still has the time to quickly introduce. Others are just as capable, but timing and networking is everything involving this.
Of course I will claim Safe Harbor and state this is all my opinion based on both past BKS performance, the inability to judge the future BKS performance, My inability to judge the ability of BKS contacts to read or their skill level of reading comprehension as well as their ability to assign a reasonable priority level to communications they receive.
I tried to be a BKS shareholder. Perhaps I should have sold my BKS holdings, bought RIMM and gone to corporation X and Z with thisa month ago before RIMM re-bounded.
BKS wouldn't know when something was falling in their lap if it was the moon. I look at a lowly RIMM and the BKS arrogant silence I'm experiencing at this end makes me sick, Even though I know the stocking of the new but now already run of the mill HD's numbers will be included in the next quarterly. But then what? More of the same? Follow the leader? Cut the price? ADVANCE!!!
And I want to know............ How do you reconcile all of the money spent on the NOOK that came from the co-mingled cash that included cash received from selling gift cards that the last time I checked bounces back and forth but generally is around a $300million outstanding liability.
If you spin off the NOOK, how do you reconcile spending that gift card liability cash and leaving that liability 100% on the back of BKS? BKS is out 100% of that cash when redeemed for non-NOOK division inventory and For NOOK division inventory, out the amount what BKS does not ultimatey own in a NOOKdivision or spin off.
Did $300mil just happen to resemble the gift card liability? What balance sheet gets screwed?