Indigo Books and Music (OTC:IDGBF) is a chain of Canadian bookstores, with both large format and small format stores. They are the only bookstore chain in Canada of any significance, which gives them a competitive advantage, but their niche has been under attack as paper books fall to electronic reading. The company has a large cash reserve, and is diversifying away from selling solely books and into the lifestyle, paper and toy categories where it is experiencing double digit growth. However, the company as a whole experienced a 3.3% revenue decline in its most recent quarter compared to the same quarter the year previously.
Balance Sheet Protection
The biggest advantage to an investment in Indigo is that it...
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