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Originally Posted by JJoyce
Ok, it's been a while since I've been here, and reading this thread has reminded me of why that is.
This is possibly the most inane, delusional and just "out there" rambling I've possibly read in the last three months.
For those self proclaimed amateur financial wizards out there pulling a fantastic chicken little act, it's worth noting that investors AREN'T "freaking out" and it certainly has nothing to do with Lynch's statement regarding exploring options with the nook side of the business.
In fact, the announcement that B&N was exploring splitting off the nook side of the business was regarded positively and had a stabling effect on the market. Earlier that morning, B&N had issued a guidance statement in which they announced they were adjusting earnings downward, based on a few factors.
Understandably, the market didn't like that too much. So Lynch gets sent out to let investors know that the digital side is doing very well and therefore B&N is looking at its options for capitalizing on that success.
You people might want to stop your slavering over "the impending bankruptcy" of B&N to rejoin the rest of the world in reality.
The reality of it is that B&N has absolutely no intention of selling off the digital division, nor are they shopping it around. What that statement means is that B&N is looking in to the possibility of a spin-off for the digital/nook division, which has a lot of potential upsides in terms of favorable restructuring of debt and regulatory benefits such as potentially giving B&N the ability to offer ebooks without being required to collect sales tax due to physical presence (which is a huge advantage amazon has at present).
Bottom line...do you due diligence before leaping along with the other lemmings. There's a reason for the buy and strong buys outnumbering the sells.
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I think most of us understand that. They want to branch Nook off into its own which IMO is a good thing.
Still though BN itself most likely will either fold or downsize bigtime in the future.