Just placed my sell order. Everyone will take from the WSJ article the salient points they wish to emphasize. The article confirms for me some things that have troubled me for awhile.
The company slashed its TV advertising budget last year because it wasn't certain the ads significantly improved store sales. But barnesandnoble.com was spending millions on a nationwide TV and print campaign, a move that drove people to its sites as well as its stores. Borders executives say they are uncertain how much they will spend on advertising and promotion this year.
It is especially apparent that none of those employees with pierced body parts has ever had a course in Marketing 101. The last sentence also indicates that management still doesn't "get it".
This article, published today in the WSJ, a periodical for investors, reflects current information and current thinking. Pfeffer had a golden opportunity to tell the market a new story, hype the company, put a positive spin on things, change some minds. So what does he say? The stores look cluttered, I'm painting them, putting up new signs, changing the logo colors. And oh yea, we're giving everyone a cup of coffee. Give me a break. And all DiRomauldo wants to talk about is how insane the internet is. This is not what the market wants to hear.
Opportunity lost. This was a feature article in the market newspaper, a chance to convince Mr Market that they now had it going and were going to start kicking butt. What do we get? Yea, we blew it, but we're gonna give everybody coffee! Just clueless. Until this company learns how to talk to the street and promote itself this stock is going to stay in the toilet.
They blew it alright. Big time. Again.
I'm outta here.
RC
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