Hi Raj,
I hope you got the answers you wanted from the BGP veterans; if you like reading threads, how about some info from a BGP novice.
I bought 500 BGP yesterday, and I expect to see an upturn in the near future, though it would take someone much smarter than me to say how much. From what I read the resistance level seems to be $16-17.
Why did I buy? To me the fundamentals look good. The last 3 years EPS have climbed well (1/96: $-2.94, 1/97: $0.77, 1/98: $1.06) and revenue over that period has grown strongly ($1.75BN, $1.96BN, $2.26BN). They have $1.8BN assets but only $6 million long-term debt. Price/earnings ratio is 12.8, compared to the industry average of 16.4, and the price-to-book value (no pun intended) is 1.76, which also looks good compared to the industry average (and to BKS at 3.35).
On the technical side, the RSI is climbing while the Bollinger bands have narrowed. It looks like BGP has tested its bottom for now. Why not look at the excellent post on the www3.techstocks.com Covered Calls thread?
Lastly, I think Borders has a good formula and some strong points which AMZN will find hard to match once the internet stock hype starts to cool:-
1) Going into Borders is an enjoyable experience. Since books are largely a luxury item, this will remain important. Plus they can combine the advantages of book browsing and large stocks with online ordering at the store for anything which they don't currently have.
2) It's easy to return books, provided Borders is nearby. You can order online via the website and return to the bookstore if you want.
That's enough rambling from me. Good luck to all.
Regards,
Nigel (in Europe) |
