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David Pogue and Walt Mossberg pan Barnes & Noble's (BKS) Nook e-book reader, with the former...

David Pogue and Walt Mossberg pan Barnes & Noble's (BKS) Nook e-book reader, with the former calling it "slower than an anesthetized slug in winter." Pogue also notes that the Nook's much-touted distinctions are fraught with footnotes. Mossberg called the Nook annoying, and said Kindle's navigation system "runs circles around the Nook's." Shares of BKS fell 2.7% Wednesday.
Comments (2)
  • ari5000
    , contributor
    Comments (371) | Send Message
     
    I see AMZN buying out all their stores when BKS share price hits about 10.

     

    BKS trying to compete with AMZN. Like the JV basketball team in my hometown playing against the Lakers.
    10 Dec 2009, 09:27 AM Reply Like
  • fvh
    , contributor
    Comments (3) | Send Message
     
    I think BKS has done some good moves recently and playing more on the offensive ... college bookstores, launch of nook. Mixing e-sales with traditional sales and good brand equity. Stirring things up and ready for 2010 and beyond. They paid a bit too much for college to my mind and will have some start up issues on the nook side. In essence it is a stable company with some good value metrics - the one below expresses the difference between buying growth or grow what you buy:

     

    AZN: EV/EBITDA 44.8x
    BKS: EV/EBITDA 2.7x

     

    BKS still has a good cash position and its levered free cash flow yield [(EBITDA - capex +/- WC changes - debt - interest payments - tax) / market equity value] is also strong.

     

    AZN is the asset with more downside risk in terms of performance although it has the sharper business model. In your metaphor I can still enjoy a team which is paid less but giving away an attractive and value based performance.
    21 Dec 2009, 11:02 AM Reply Like
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