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$4.95 0.03 (0.61%)
7/23/2008 4:03 PM

Borders Group, Inc. (BGP)

CAPS Rating:
**

The Company operates books, music and movie superstores in the United States.

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What the Community Thinks

Total Members

204 Outperforms
96 Underperforms
 

All-Stars

58 Outperforms
34 Underperforms
 

Wall Street

3 Outperforms
2 Underperforms
 

Members bullish on BGP are also bullish on:

Members bearish on BGP are also bearish on:

Ticker Tags

Michigan (10), Specialty Retail, Other (47), Micro Cap (4824), Small Cap (1922), Ann Arbor (2)
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Borders Group, Inc. At A Glance

Current Price: $4.95
Last Trade Time: 7/23/2008 4:03 PM
Open: $0.00
Previous Close: $4.92
Daily Range: $4.72 - $5.09
52-Week Range: $3.87 - $17.66
Volume: 798,724
Market Cap: $297.70M
P/E Ratio: 41.19
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Stock Trends

BGP VS S&P 500 (SPY)

BGP 12 month chart vs. S&P

News & Discussion Boards

Other News Headlines for BGP

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Top Bull Pitch

Recs

2

Borders Group, Inc. (BGP)

Avatar XMFLurch (42.86) Submitted: 11/26/07 10:09 AM

Turnaround. CEO Jones' plan to focus on the domestic superstores while paring unprofitable Waldenbooks and selling International stores is beginning to gain traction.

Specifically, the most recent (Q3 2007) quarter indicated some important progress with positive comparable stores. However, the c...More

Replies: 1 | Reply | Permalink

Top Bear Pitch

Recs

6

Borders Group, Inc. (BGP)

Avatar LORDZPAIN (98.26) Submitted: 6/11/08 11:56 PM

Borders Group Inc (MI), a small-cap value company in the consumer services sector, is expected to significantly underperform the market over the next six months with very high risk.


Underperformer

with
very
very
very
high !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...More

Replies: 2 | Reply | Permalink

CAPS Members

picks per page. CHANGE

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Recs

0

 (BGP)

Avatar enochwasnot (79.46) Submitted: 7/21/08 1:35 PM : Underperform Start Price: $18.49 BGP Score: 56.36

Over the past year, Borders has steadily been readying itself for a takeover: divesting themselves of overseas operations; ending their 8 year partnership with Amazon; slashing payroll at all levels and reducing the benefits of all employees in an attempt to cut costs.

They have progressively weeded out full-time employees in favor of part-time so that major medical benefits, personal days, vacation days, etc. are unavailable to a majority of its employees. Huge savings. Additionally, they have lowered the cap on the number of personal days that full-time staff may accrue. The company has suspended matching contributions to the employee 401(k) for the near-term; and all employees who own Borders stock as a component of their 401(k) have been ordered to have it liquidated. The latest? Since its inception, Borders has offered complimentary gift wrap for customer purchases. That is now being eliminated in the interest of frugality.

All these changes--and many more I haven't mentioned--may positively affect the short-term health of the company. IMHO as a Fool, it is an attempt to cook the books as much as possible in order to get the best buyout terms possible. The deal, in fact, may already be done, and we will all get the news with fiscal '09.

This company never truly recovered from the K-Mart buyout, when the top talent checked out. There has been a slow poisoning of the company's culture trickling down from the top since then. As for future takeover candidates, I'm not certain that BKS will bite. Any metropolitan dweller will tell you that Borders and B&N always seem to open stores right across the street from each other. Synergy-Schmynergy, I say. Way too much overlap in the businesses' footprints. A takeover would still surely herald many store closings and the overall restructure would be too costly. Less surprising might be Amazon sniffing around for a bricks-n-mortar face... Wild speculation, all of it.

No one wanted to buy Borders when they last put themselves on the chopping block, and they were arguably in better shape then than they are now. If a takeover doesn't happen this time around, I believe the long-term viability of the company is in jeopardy.

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Recs

0

 (BGP)

Avatar baselineace (22.68) Submitted: 7/21/08 12:14 AM : Underperform Start Price: $4.94 BGP Score: 1.20

Not making any money

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Recs

0

 (BGP)

Avatar catrip (86.04) Submitted: 7/11/08 1:39 PM : Outperform Start Price: $4.08 BGP Score: 17.43

Trading at almost half of book value today -- Pershing's got a huge stake at $19 and options at $7-- Klarman bought a stake -- turnaround is gaining traction (losses are narrowing progressively)-- at this price, how can this NOT outperform the S&P?

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Recs

0

 (BGP)

Avatar osusports10 (78.74) Submitted: 7/06/08 3:04 PM : Outperform Start Price: $4.69 BGP Score: 4.45

Good buyout candidate.

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Recs

0

 (BGP)

Avatar TMFinept (85.99) Submitted: 7/03/08 1:54 PM : Outperform Start Price: $4.69 BGP Score: 4.45

Recent sale of a small fraction of their superstores (Asia Pacific business - AUS, NZ, Singapore) for 1/4 of their market cap suggests that Borders is substantially undervalued. I expect them to trim/sell underperforming assets (Waldenbooks) and continue revamping their superstores to effect a turnaround. They may not get a chance, though, because the company looks like a takeover candidate.





Capex will be high for the immediate future and they're pursuing their turnaround strategy at... Oh, just about the worst time ever... but there's a lot of potential here and this is a great price. Following Ackman and a Fool rec into Borders.

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Wall Street

Results 1 - 5 of 5  

picks per page. CHANGE Expand All Pitches

Top
Pick
Member NameMember RatingStart
Date
CallTime FrameStart
Price
Stock
Gain
S&P
Gain
ScorePitch
TrackSoros 89.82 03/31/08 Outperform NS $5.87-15.67%-2.85%-12.82 Toggle the visibility of 60-Second Pitch and replies
TrackDreman 95.90 09/30/07 Outperform NS $13.10-62.23%-15.97%-46.26 Toggle the visibility of 60-Second Pitch and replies
TrackBillAckman 34.47 09/30/07 Outperform NS $13.10-62.23%-15.97%-46.26 Toggle the visibility of 60-Second Pitch and replies
TrackJimCramer 81.15 11/14/06 Underperform 3W $23.47-78.91%-8.55%+70.36
TrackMatrix 93.96 09/11/06 Underperform NS $19.64-74.79%-1.27%+73.52

Results 1 - 5 of 5  

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