the article by fool on the hill an invsstment
opinion by louis corrigan time to sell Amazon.com?
http//fnews.yahoo.com/fool/98/07/08/dna_980708.htm this should let u no this puppy could b flying
next few weeks!
As I thought, BKS followed the AMZN gyrations
almost in unison. BKS is stretching at a 45x multiple on
1/99 earnings forecast. Of course, earnings could be
higher, but there has to be an awful lot of money being
spent to develop and advertise Internet marketing, so
margins may, like AMZN, be negligible or nonexistent for
a while. I expect AMZN to spike up tomorrow at the
open, due to the insane frenzy over Yahoo's "great"
report, and then continue to crumble. So, my educated
guess is that BKS will continue to recede to a former
level until AMZN is flushed down the toilet, perhaps
back to the mid-30s, at which time I'll accumulate
more shares of BKS.
Folks are recognizing value in BKS internet
business. You can see we've started to follow the internet
hype the last week or two. That means fast runs - in
both directions. Just part of the new territory.
I just don't understand why someone would invest
in low revenue companies like Yahoo and Amazon, when
BKS does almost $3 BILLION in sales PER YEAR
From its "profile" : Barnes and Noble, Inc. is
primarily engaged in the sale of books through four
principal strategies: superstore, malls, direct mail, and
e-commerce. For the 13 weeks ended 5/2/98, revenues increased
12% to $666.3 million. Net loss decreased 14% to $3.3
million. Revenues reflect higher Barnes and Noble store
revenues to due increased same store sales and the
addition of 51 new stores. Loss also benefitted from
higher margins due to less reliance on wholesalers.
Barnes & Noble says won't comment on
NEW YORK, July 6 (Reuters) - Barnes & Noble Inc. said
Monday it would not comment on its stock's movement last
citing company policy not to discuss unusual market
The company was responding to the NYSE's request that
it announce any corporate developments that would
have explained the
stock's volatility on
Barnes & Noble shares were up sharply in trading on
Thursday, hitting a high of 47-1/2 from its opening price
of 45-3/4 before
dropping down to close at
The stock was up again Monday by mid-morning, trading
Thank you for your reply. I invest in companies
based on fundamentals, and I let my winners go, even if
valuations get ahead of themselves (at least until I get an
IRA set up). However, I have learned that timing can
really help your returns. For example, I could have got
BKS 30-40% cheaper 3 years ago if I had waited (I
still have a huge gain, but it could have been much
better). Thus your info is very much appreciated.
Again, I thank you,
close below todays low this week will retest 40.
I believe we will see lower earnings due to bks war
on amzn , increased marketing costs and lower sales
prices. reminds me of cpq vs. dell. It is a much better
stock long term, but don't pay any attention to amzn,
that is all short squeeze till death. bks will outlast
amzn for sure, but that doesn't matter for now. I
would sell calls on rallies or get out and buy dip into
40 and buy more into gap at 37, settle below 37 and
something bad brewing for bks.
I like the stock, but
see us running out of steam technically, maybe due
bad earnings due soon?late july?
i believe he has a web site now, try search in
bks and on web i bet you hit his trading site or
books. He teaches simple stuff and in plain english plus
he points out money management part of trading which
is key to size. Technicals, help you get in and more
important tell you when to get out. But you must be
disciplined. Charting and tech anal. are basically same thing,
many type of t.a. most involve daily charts, i use
candlestick charts myself buy am very basic, find four or
five things that work and that you undrstand and use
them, there are 5000 variations of technical analysis,
but elliot wave theory, trendlines and fibbanochi
retracments along with rsi and stochastics are the main ones,
i also use daiy patterns, previous hi and lows etc
along with 5 min and 30 min charts when i am day
trading or anxious about a postion, same methods
differnet time charts, they all work over the long haul if
you are disciplined. Technicals discount all
fundamental knowledge and combine that with the predictable
behavior of human beings to fear and greed...