You know, the discussion of Amazon buying Borders is interesting. However, I think if Amazon made a bid for Borders or any other brick and morter store, you would see Amazon collapse in stock price. I say this for two reasons.
1) Everyone and their brother is banking on the fact that Internet companies have no iventory, no labor, no real estate, in other words, they have no expenses. You just type in what you want, they call the book maker, he ships it out, and they reap a substantial profit. Theoretically this means that they can make a huge profit margin on some thing that Borders can't. So if they made a forey into a brick and morter store, this would be seen as a misfit. It would add cost, the one thing the Internet jockeys hate.
2) It would be percieved that the Internet model isn't working out as hyped. Once again, you would have to ask yourself why would they do this? If the Internet is the store of the future, why would the take a trip to the past? The only answer would be that they need to, hence, the store of the future isn't turning out like it should.
I just can't see Amazon doing this. Of course, I couldn't see anyone giving 30 dollar a share for Amazon either, so I am completely perplexed at 400.
By the way, I go to Borders a lot as it is close to where I live. I agree, it is much less a social place than BKS. I own BKS, primarily because I like their stores and they seem to make money, not to mention they are going to spin off their .com unit this quarter, so when in Rome do as the Romans do. But I would consider purchasing some Borders for a long term hold. |
