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

Barnes & Noble, Inc. Message Board

  • samsonp65 samsonp65 Aug 4, 2010 1:58 PM Flag

    You want to "sell out" so you announce it...

    Terrific strategy, provided you want to give your largest shareholder the opportunity to exit at a decent price.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Yes, but you're forgetting one huge factor...Overhead. Too much overhead.

      They may make it, but electronic all the way.

      My vision is a slow bleed near death experience. If make it, most stores gone.

      Most popular bulk bought at Costco, WalMart or Online.

      “Piazzas of American Culture" is Riggio's attempt to sell brand. To me, means "nearing" panic and desperation.

      In long-run, competitive price and ease of obtaining information most important.

      Anything's possible.

      P.S. Definitely not Strong Buy. Hold at best.

    • "Anyway, some questions?

      - If private, why rumor/state "Sale". No way happening by controlling group.
      - Where is the long-term growth?"

      B&N is the fastest growing e-book retailer with at least a 20% market share according to the last quarterly report. They had 0% less than a year ago. Those revenues are expected to be 1 Billion this year and 3-4 Billion by 2013. Annual revenues are expected to be at least 9 Billion by 2013. Also, despite all the media conjecture, sales of paper copies have been rising along with the huge growth from e-books.

      "- Which way are the margins moving?"

      I feel that margins will improve going forward because they are winding down stores that are poor performers. If all stores combined are only making small profits and you look at store earnings as a bell curve it doesn't take shutting down a few of the worst ones to make a big difference. They are currently able to renew leases at lower rates. As consumer confidence returns to normal levels I feel brick-and-mortar profit margins will improve to pre-recession levels of around 3% I don't know what the profit margin is on e-books, but it's got to be higher than paper copies, but even if you took the estimated 2013 revenues and put an aggregate profit margin for paper and electronic combined of 3% that would come out to earnings of around 4.80$ per-share. Making the shares conservatively worth 70$.

      "- Where is the competitive advantage?"

      It's biggest Brick and mortar rival Borders is in terrible financial condition and recently had to negotiate with banks to keep from breaching loan covenants. There is a good possibility Borders could go bankrupt sometime in the next few years. It's pretty safe to assume if they did you could see at least half of their 2+ Billion in revenues go to Barnes and Noble.

      Amazon is the front runner with online sales, but it doesn't have much hands-on exposure to customers. In B&N stores you can actually test and hold the products (NOOK) and you have a place to take stuff if it breaks. Even in Target stores the Kindle display models are not even operational. B&N has seen huge growth over the last year with online sales while, in my opinion, Amazon doesn't have a lot of room for growth on that front. Don't get me wrong, Amazon doesn't have much chance of playing second fiddle to B&N online, but there is a lot of potential for continued growth online and both companies will make nice profits.

    • Hey, it's a market. You play your way, we play our way.

      Just an FYI...We don't move the market...The big money does. Moreover, this is a tool for like minded traders to compare notes/visions. Don't take it all personally.

      Anyway, some questions?

      - If private, why rumor/state "Sale". No way happening by controlling group.
      - Where is the long-term growth?
      - Which way are the margins moving?
      - Where is the competitive advantage?

      I don't see it.

    • I think both Chris and I said something. I'm not sure how Chris figured it out. I researched, and understood how Riggio felt and saw an opportunity for him.

      Doing the research you'll see he's been socking away a dividend that is pretty high for some time now. He hasn't been reinvesting that dividend like the Borders own. He's just been holding on to it. I'm guessing it was his plan since about 2 or 3 years ago.

      There were so many articles that showed that Riggio loves his company. He treats it as his baby. Many more that talk of his passion for books. He's interested in the buisness and, as most articles are now saying, doesn't want to get out.

      Ron Burkle's recent (last Nov. I think) play for the company gave him the opportunity to convince the major share holders that for him to buy it out would be the best thing, else Burkle was coming in and restructuring them right out of the equation.

      Unfortunately all these short sellers that have recently come on the boards want to do is preach how bad in the hole they are and try to convince people to "get out now". Thier goal is to cause a panic whereever they can so the stock price drops and they make their quick $$s. I don't trust a one of them any more than the guy on the street corner wanting to sell me a "Rolex" for $10.

    • Agreed! The guy ranting on every post about it becoming a grocery store!?! Reality check, there is no way that would work. B&N is a quality store and the nookstudy is a new corner that no one else has moved into yet. They just need a fair priced e-reader that can operate in the textbook scene now.

      This is not blockbuster. Books are a cherished medium that go back hundreds of years. E-readers supplement but in no way totally replace books. Most people(me included) hope that in the future, when you buy a book, you will get a digital version free. Much like how when you buy a movie now, you are able to upload it to whatever device you like. There is a lot of value in this stock. A lot of speculation is gyrating the prices currently, there is always so many people trying to short this. I always get news alert of the high percentage of short volume. It should be a fun ride this sales news. Thanks Finance, Chris, Indy, and Merklon for being consistent.

      I remember reading 2-3 weeks ago, one of you posting that riggio was going to screw shareholders and take company private, I think you were probably right on the money, but how did you figure that out?

    • It's about a week and a half away.

      I really hate all these instant gratification people. I liked it a lot better here before Monday.

    • Burkle has convinced Riggio to convert B&N into a chain of supermarkets.

      There's no other reasonable use for stores that generate such low sales per square foot.

      At its current price, B&N is a steal if it's converted into supermarkets.

      • 1 Reply to no_slappz
      • no slappz - please stop injecting your idea on every thread. You do not know what you are talking about. First of all, BN leases its locations. It does not have to hold on to them. Second, the buildings are not condusive for a supermarket; I know, I ran one. The receiving logistics required for supermarkets would bottleneck in BN stores. BN will continue to diversify its product mix in categories that will likely not go digital too soon (gift, toys, games, novelties, digital devices, etc; either on its own or through acquisition.

    • Try reading the new news from the NYtimes on who may buy bks....

      your toasted short and if you stay short your going to be ash....hope you get out before your charcoal...

    • Mr. Riggio doesn't want to go anywhere. In fact it's the very opposite. He wants it all to himself. He's taking his ball and going home. I'd make sure you have enough invested in it when he buys you out for 25$ / share in 2 months.

10.750.00(0.00%)Oct 21 4:02 PMEDT