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The Company's principal business is the sale of trade books, mass market paperbacks, children's books, bargain books, magazines, music and movies direct to customers.
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kahunacfa (< 20) Submitted: 2/25/08 5:36 PM : Start Price: $28.74 BKS Score: -13.19
Barnes & Noble is a Noble book seller. In my opinion, the company has the opportunity to grow earnings per share at a rate approaching 7% to 8% compounded over the next five or more years. Given this projected growth rate, given the current share price of approximately $29.65 per share, the stock has the potential to appreciate toward my estimate of its Intrinsic Value of $38-$40 per share. The shares are undervalued and a BUY in my opinion.The primary risk factors are: 1. The U.S. Stock Market, 2. The current Recession, and 3. A difficult competitive enviroment for book sellers - especially Amazon.com.Kahuna,CFA
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