* Here's the intel from Yahoo
BKS has a market cap of just over 2 BILLION $
They sell are expected to make $1.21 a share this year. Next year $1.71
BKS owns 50% of the upcoming IPO BNBN (Barnesandnoble.com) they sold the other 50% to Bertlesmann for $200 million and between the two of them they are going to offer 20% to the public.
The IPO is scheduled for the week of April 26th.
The lead underwriters are Merill Lynch and Goldman Sachs (heavy hitters).
The offering amount is in excess of 1 BILLION $
This IPO has been called 'the mother of ALL IPO's!' The demand will be incredible. If IVIL ran up over 300%, and MTKW ran up over 400% and EBAY is up over 1500% (or something like that),
what do you think BNBN will come in at? I'm guessing over 400%.
But, let's be conservative and say 300%. Assuming they don't raise the price of the IPO, or the # of shares they are offering, that will give BNBN a market cap of over 4 BILLION $.
Since BKS owns 50% of BNBN, that makes their stake in BNBN - 2 BILLION $. That means that even if they didn't have the 100's of retail stores and super bookstores that they do, and they JUST had BNBN, the stock would be trading at...$33.00 a share.
So, basically, BKS is worth DOUBLE what it is currenly trading at.
Just remember, AMZN has a market cap of 23 BILLION $
Amzn is the 2nd most vistited website, BKS is 4th. I don't think the market cap difference between #2 and #4 should be 21 BILLION $. Do you?
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