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The planned spinoff of Barnes & Noble's (BKS) Nook business could make it an acquisition...

The planned spinoff of Barnes & Noble's (BKS) Nook business could make it an acquisition target, claims Maxim Group's John Tinker. With $1.5B in e-book/e-reader revenue, a price/sales multiple of 1x would translate into a $22/share buyout price, nearly twice B&N's current level. But Amazon's aggressive pricing and the Kindle Fire's early success could put some would-be buyers on edge. (earlier)
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  • silence_twain
    , contributor
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    The bulls on BKS are doing what bulls on SHLD have been doing for a while. They are giving out overly optimistic SOTP valuations to a retailer in the midst of a serious decline. Buying reatilers in delcine on some fanciful SOTP is never a good idea.
    5 Jan 2012, 05:55 PM Reply Like
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