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Barnes & Noble (BKS +6%) is surging as investors show their appreciation of Apple's decision...

Barnes & Noble (BKS +6%) is surging as investors show their appreciation of Apple's decision to start iPad Mini pricing at $329. B&N new 7" Nook HD sells for $199-$229, while the 9" Nook HD+ goes for $269-$299. Shares sold off yesterday on Apple-related worries. Texas Instruments (TXN -0.4%), which (for now) supplies processors for both the Nook and Kindle lines, could be an indirect beneficiary of the Mini's pricing. Ditto Nvidia (NVDA), whose processors go into the Nexus 7 and other Android tablets.
Comments (9)
  • EPS: -1.32


    Having a cheap reader doesn't mean profitability. Better to buy Apple on the dip.
    23 Oct 2012, 02:34 PM Reply Like
  • What a stupid sell-off. Great buying op. I am actually glad APple prices it where they did. They will still sell every single unit they can produce (in advance probably) and this means more profit for Apple. COmparing an iPad to a Nook or Kindle is like comparing a Nokia to an iPhone. Apples and oranges. The quality is MUCH better and the price is worth it. Very few people who can afford it would select an inferior e-reader type device instead of an Apple iPad just because it is $130 cheaper. Apple iPads are far more useful and sophisticated, as well as much cooler and like the most popular cars their resale value is also very high.


    This mini Ipad will also now not cannibalize the regular iPad much as many were fearing, and will add millions of new users to the Apple eco-system, from which as we know there is seldom any going back once customers are there.


    So now, smart money will accumulate more shares and Apple will just have top show the dubious under-estimating Street the money, which they will soon, starting in two days but especially the next three quarters which will be moonshots regardless of how the global economy is faring.
    23 Oct 2012, 04:31 PM Reply Like
  • I disagree about the cannibalization. After watching some of the video of people using the mini, I think it will cannibalize the iPad, but that's why the $329 price point makes sense.
    24 Oct 2012, 09:08 AM Reply Like
  • And yeah, I will be looking to add more shares tomorrow. This price is like free money is you have a time horizon of over a few days or weeks. There is absolutely no reason for this 90 point drop which has any substantive merit. Again, at $329 instead of $299 Apple will simply make an extra $30 of profit. Yes Kindles etc will survive but Amazon makes no profit on the Kindle fires. They sell them at cost, or less.
    23 Oct 2012, 04:33 PM Reply Like
  • BNS is burning nearly $200m cash a year, only has $54m cash on the balance sheet and growing huge debt of $324m.


    Other than that...WST geniuses are surging it....dumb is the new smart.
    23 Oct 2012, 04:58 PM Reply Like


    Great comparison chart there. The B&N Nook HD is the highest resolution 7" tablet on the market. The downside for BKS is that they are set-up side by side in stores with other tablets. If BKS had a better distribution centre, then they might sell more. I expect BKS share price to slide downward with the S&P 500, which should breach under 1400 soon.
    23 Oct 2012, 09:05 PM Reply Like
  • The Nook is OK but a loss leader like the Kindle and Nexus. Only Apple makes big profits in pads and now they will dominate even more. The sell-off today is one of the most idiotic I have ever seen. Apple wil actually make MORE money. And not as much cannibalization. On the other hand, I remember when every stock on earth was selling for ridiculously low prices. But Apple is the best of breed in the world and they are being more punished than loser companies, with such a low PE and such huge growth and mountains of cash. This is a trillion dollar company and the Street or automated selling programs refuse to see the obvious.
    24 Oct 2012, 01:23 AM Reply Like
  • AAPL in not immune from profit taking, nor from a market sell-off. Shares are very liquid and easy for large investment companies to sell. Volume in AAPL shares is running close to normal.
    24 Oct 2012, 05:58 PM Reply Like
  • I bet more people want the one from Apple and AAPL is more profitable than BKS and a cheaper stock than AMZN. If you want to buy a stock, AAPL is the way to go. If you trade frequently, then any of them may go up for a day.
    24 Oct 2012, 11:18 AM Reply Like
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