Why Barnes & Noble Is Worth a Closer Look
NakedValue submits:The best investments are often found among unwanted and unloved stocks. Unfortunately, this means that you'll rarely buy the best performing stock or the stock that everyone talks about at cocktail parties. Sometimes, good investing may even lead you to stocks that EVERYONE "knows" is a terrible investment. Barnes & Noble (BKS) might just be one of those stocks, so let's hold our noses and take a closer look.
CONSENSUS BEAR OUTLOOK
- The brick and mortar bookstore business model is dead (see: Borders (BGPIQ.PK))
- Barnes & Noble's dividend cut is an ominous sign
- It's cheaper to buy books online (Amazon.com (AMZN))
- Barnes & Noble is hopelessly behind the eReader curve (Kindle, iPad, Wal-Mart (WMT) eReaders)
The brick and mortar bookstore model is clearly in a secular decline, but the Borders bankruptcy may have created a misconception about the speed at which the model is changing. Borders' struggles areComplete Story »