Trisha wrote on Mar 8 1999 11:26PM EST:
[...]
I heard an analyst say this evening that he thought Borders could test 11. What a jerk! <G>
and in response Satellite Mike wrote on Mar 9 1999 12:02AM EST:
Guys like that give all analysts a bad name, unfortunately.
I'm curious what makes people say things like this. I know one of both of the comments were made at least partially in jest, but imo they still indicate an odd and potentially dangerous tendency.
Correct me if I'm wrong, but aren't analysts supposed to predict the how the street is supposed to treat a stock as well as examine the fundamentals of the company? If you're calling an analyst who predicts Borders could test 11 (when it's currently under 15) a jerk and someone who gives all analysts a bad name, would you have perhaps said the same about an analyst predicting a test of 15 when it was around 20? If so then you would be a jerk who gives all investors a bad name and the analyst would have been, well, a darn good analyst.
I guess the point I'm trying to make is one I've "learned" so to speak on the PROG thread (another great bargain btw). Put simply, "don't fall in love with a stock." If an analyst making such a rational prediction (after all, Borders is obviously out of favor on the street) leads you to insult and have a bad opinion of him, then it might be time to step back a bit.
That said, I'd like to add that I agree that Borders is a great value. I've been long since late 1996. I considered selling some or all of my holdings in July which, in retrospect, I wish I had done. Instead, I ended up adding some shares when it dropped below 20 in early January. While I now wish I had waited to add, I'm not particularly uncomfortable with the investment.
On a more productive note, reading over that press-release gave me some ideas. Since Borders stores already double as coffee shops and they are planning to add a fair bit of customer accessible technology (in the form of the "database query" type terminals), why not consider the additional step of becoming an "internet cafe" of sorts?
I'm not sure how successful they've been, but I've seen several coffee shops and similar places offering internet access terminals for a couple of dollars or so an hour. It doesn't seem like the investment should be too huge compared to how much a superstore must cost, and it would fit extremely well with both the coffee shop atmosphere and the "Convergence" of the retail and internet sides of the business.
I know there have been numerous times when I've wanted to be able to "stop in" somewhere to check email when it isn't convenient to get home or even to a library (of which only a few seem to offer such services). In addition, picture browsing for investment books and, after finding a few that look good, surfing onto SI to find comments on them without even leaving the store!!
--Bill Landis |
