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Barnes and Nobles has a 6% dividend yield but has no operating profits. Plus it still has to pay the interest on its debt. it has 380MM in debt. It generally takes losses except in the fourth quarter with Christmas. trailing 12 month operating profit is still negative. in short, this company's operating performance is terrible. the equity holders will try to extract as much value as possible....hence the dividend when there are no profits and no clarity on when and how a turnaround can happen.
is it not obvious to anyone else that the long-term prospects for this store are similar to border's? its stores are too large....you will have expense deleveraging.
the nook is a loser in my opinion. it is far too slow and is nothing special. and the nook color is an act of desperation.
the internet + ebooks is leading to a slow hemorrhaging but inevitable fate.
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