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Peter Larson

 
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  • Barnes & Noble Revenue Down, Nook Deal With Microsoft Ends, Investors Flee [View article]
    They've been reticent to say what they will do with cash flow now.

    For one thing, they may be obligated to buy out Pearson Nook shares under terms matching Microsoft's over the next 15 days.

    After that, they will probably hold on to any cash until after the spinoff, to ensure both Nook and Barnes and Noble have sufficient balance sheets to keep all interested parties and debtholders satisfied at the time of the spinoff.

    They may do a dividend and/or buyback in conjuction with the spinoff. That's a Liberty favorite.
    Dec 5, 2014. 04:41 PM | Likes Like |Link to Comment
  • Why I Hate Apple [View article]
    Didn't read the article, but I've always wanted to use that headline.
    Dec 5, 2014. 01:24 PM | Likes Like |Link to Comment
  • Barnes & Noble's Nook Has No Niche [View article]
    "The chorus of nay-sayers probably scared many investors out of BKS shares at the worst possible time."

    Ah but WallStreet,

    When other investors are scared off, that is an opportunity for us, no?

    Most of the money I have made in BKS, I have made by understanding that Riggio orchestrates PR for the benefit of his own portfolio. Perhaps unintentionally at times, but he is more than happy to let the stock drop on unclarified misperceptions so that he can buy more at a lower price.

    Case in point: Microsoft's $238 million loss on the Nook unit is Barnes and Noble's $238 million gain.
    Dec 5, 2014. 12:40 PM | Likes Like |Link to Comment
  • Barnes & Noble's Nook Has No Niche [View article]
    Evan,

    This is an immature reaction to a snide, but accurate comment.

    I've written multiple articles on this stock at SA, and when I (and others) do we put a lot of effort into understanding the ins and outs of the business. As well as coming up with unique and (hopefully) meaningful insights into the company strategy.

    Your article went on for quite long, and did not contain much more than verbose opinions on general knowledge, and in some cases inaccurate knowledge.

    For example, you stated that the Nook would not be carried in the Barnes and Noble stores. Management has not stated that or even implied that. They have on multiple occasions that there would continue to be a strong working relationship between nook and retail under any scenario.

    But more troubling is that you have replied to Debunker, using 321 words, rather defensively and still without adding anything new. This is frustrating for our readers and I would ask that you not do so. And I would certainly ask that you not tell them to click on articles (since the next article might be mine ;)

    Thank You,
    Peter Larson

    PS: I am generally bullish, and you are bearish. That is fine. This isn't about that, this is about the tone of your reply.
    Dec 5, 2014. 12:35 PM | Likes Like |Link to Comment
  • Microsoft selling Nook stake to B&N, terminating agreement [View news story]
    I don't think the Nook agreement was ever part of any strategy at Microsoft.

    They were going to lose in patent court, so they paid Barnes and Noble off.

    Barnes and Noble made $185 million selling nothing.
    Dec 4, 2014. 01:01 PM | Likes Like |Link to Comment
  • Into The Bubble Basket With Amazon: Understanding Einhorn's Short [View article]
    Despite what you see on Seeking Alpha, there can't be thaaat many "Amazon haters" around given the stock is still at $300"

    The market doesn't require a 50/50 split in per capita viewpoints. It also depends on the amount of money the view-holders are putting in play.

    I think with Amazon, you have a small number of bulls. But those longs control a large amounts of capital and are willing to put it in play in a meaningful way. Meanwhile, there are a lot of shorts, but most only have small positions or are just sitting on the sideline.
    Nov 17, 2014. 12:52 PM | Likes Like |Link to Comment
  • Amazon.com: A Case Study In Stock Promotion [View instapost]
    "For Amazon, stock promotion is a core competency."

    Brilliant.
    Oct 30, 2014. 01:38 PM | 3 Likes Like |Link to Comment
  • Amazon's Q3 2014 Results: The End Of The Rainbow, The Start Of The Storm [View article]
    Seriously, how are they solvent?
    Oct 28, 2014. 04:51 PM | 1 Like Like |Link to Comment
  • Part Of Amazon.com's Core Is Dying [View article]
    "Peter Larson who? He was right. T owns AMZn."

    -Yo?

    Or are you talking about the Kindle exec?
    Oct 27, 2014. 01:49 PM | Likes Like |Link to Comment
  • Part Of Amazon.com's Core Is Dying [View article]
    Congratulations, Paulo.

    That is all.
    Oct 26, 2014. 08:30 PM | Likes Like |Link to Comment
  • Don't buy the Amazon dip - Barron's [View news story]
    And where IS our beamer bragging friend today?

    Warriors... come out and plaaaaay.
    Oct 26, 2014. 08:10 PM | Likes Like |Link to Comment
  • No One Wants To Hear Anything Good About Amazon, But... [View article]
    That's because it is a slapdash definition. If you are having trouble groking the concept it helps if you work a little harder than simply Googling the term and copy-pasting the result.

    A Ponzi scheme is anytime that cash flow from new investors, rather than legitimate return on invested capital, is used to make payments to existing investors. If you recognize that from the consumer perspective the Amazon Prime membership fee is an investment, and the free shipping and various other services is the dividend payment of this investment, this is EXACTLY what they are doing.

    I'm not saying this is true for all subscription programs- only subscription programs where
    1. There is a true marginal cost (ie, the company is promising a discount steep enough that they are actually selling at a loss).
    and
    2. The average user consumes a value greater than the upfront fee.

    It takes some digging to figure out Prime falls into this category.
    Oct 25, 2014. 12:27 AM | 5 Likes Like |Link to Comment
  • No One Wants To Hear Anything Good About Amazon, But... [View article]
    True, but Amazon almost always lowballs guidance and has for years. The high end is what an honest company would set as the midpoint and the low end is just to make it sound better later when they "beat expectations".

    The reason they aren't beating expectations anymore is because analysts have stopped taking the low end seriously and now just peg to the high end.

    We should probably expect a 4Q sales increase around 18%.
    Oct 25, 2014. 12:01 AM | 3 Likes Like |Link to Comment
  • No One Wants To Hear Anything Good About Amazon, But... [View article]
    Forget the PE ratio- if Amazon ever has an E again, I will consider buying it.
    Oct 24, 2014. 12:43 PM | 6 Likes Like |Link to Comment
  • No One Wants To Hear Anything Good About Amazon, But... [View article]
    We DO have a Ponzi scheme here. Look at the balance sheet.

    Amazon's unearned revenues (i.e. Prime membership fees) are the only thing keeping them solvent without mass stock dilution. But to get those fees Amazon has promised Prime members all the free shipping and shows they can handle. etc. etc.

    Amazon is losing money overall on this arrangement, but they don't reduce benefits because they are using the upfront fees to pay bills now.

    That's a Ponzi Scheme.

    Luckily for Amazon, they would probably have a business without Prime. So a Ponzi scheme in one portion of the business might not end up being fatal. But it isn't resolved yet.
    Oct 24, 2014. 12:40 PM | 8 Likes Like |Link to Comment
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