Barnes & Noble, Inc. (NYSE:BKS)

CAPS Rating: 1 out of 5

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.


Player Avatar MrOneHundred (30.62) Submitted: 1/29/2013 11:17:39 AM : Underperform Start Price: $13.24 BKS Score: -39.72

Not a good investment unless one wishes to short sell on high days, in my opinion. The nook has lost any competitive advantage to a swath of competitors (chiefly the iPad and Amazon). The stock has a P/E of -12.17 and about 61% of the Motley Fools disapprove of this stock. Sentiment seems pretty bad! Even in the college environment, retailers are shifting to online classrooms which will gravely hurt Barnes & Noble. Someone close to me used to work at one of their locations and would always have a story to tell concerning how the administration was bad to. Another reason I would avoid this stock. Some other (more quantitative figures) that are important:

ROA: -1.00 (Industry 5.80)
ROE: -4.10 (Industry 10.20)

Accounts Receivable Turnover: 30.80 (above industry)
Inventory Turnover: 2.90 (Industry 5.40)
Asset Turnover: 1.70 (Industry 2.00)

I'm guessing the good AR Turnover ratio is due to their well setup computer system that tracks who rents books. Plus most things they sell are purchased on the spot. Everything else looks pretty bad.

Thumbs and Big Toes Down!

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