Are there any ideas anyone has now regarding thread pick of BAMM?
1. I am getting tired of holding it in this market!
Those on the thread who bought near lows (under 2) have had a chance to sell at much higher prices. At current $3.30, the stock is still around 9/'01 levels. It just doesn't seem to be going anywhere. (-g- That might be a positive - so many stocks are much lower than last Sept.)
It's still a value stock (imo). Might even have a kicker potential with their newsstand businesses. Maybe the stock could/might pop to 5 level again.
2. It just seems like other beat up stocks that are more widely-followed, and maybe more respected, might do better (have better chance of share price rise) if the market ever recovers.
3. For example, in looking to sell BAMM, I checked Barnes & Noble.
finance.yahoo.com
To me here is a bookseller, where if there's a recovery in stock prices, most stock buyers would look at it much before BAMM. Foremost because BKS is much larger and so, better-known.
Also there are some attractive aspects to BKS:
Margins are lousy (as one would expect from such a retailer), but revenue increases keep cranking along:
quicken.com
The chairman, Mr. Riggio, owns at least 15% of the company and is very responsible for its growth. Apparently he is a good asset allocator, judiciously creating and spinning off the dotcom Barnes & Noble and creating and ipoing 37% of GameStop. According to an S&P report, this latter company is "the largest U.S. video game and PC entertainment software specialty retailer". I rushed a calculation that shows there's about $10/sh of GameStop in BKS share price.
I'm tempted to swap BAMM for BKS. To me it almost seems like it could be a tug-of-war between the young Buffett and Munger. Go with the value stock or go with the stock where management seems to be very competent in growing the business?
Anybody got any opinions on a course of action here?
Paul S. |
