Thread: Goldman Sachs gives Barnes and Noble new $14 price target
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Old 04-16-2012, 02:37 PM   #11
Kali Yuga
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Quote:
Originally Posted by tubemonkey View Post
B&N should spin off Nook, then dump everything else. Some small Nook Boutiques coupled with a Starbucks, etc should do quite well.
Errr....

1) The bookstores still make money. Dumping something that's still profitable, even if it's headed for trouble, is suicide.

2) They can't simply terminate all their leases, return all their books and wash their hands of the brick & mortar business.

3) B&N has been losing money on the Nook, because it costs an incredible amount just to make and market the device in the first place. So you're basically recommending they dump their source of profit, for something that loses them money?

4) B&N without its stores will be a worthless hollow shell of itself.

Now do you see why B&N is dwindling in the eyes of equity analysts...?
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