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Non-Tech : Borders Group (BGP)
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To: The Philosopher who wrote (291)4/19/1999 11:22:00 AM
From: Michael Burry  Read Replies (2) of 411
 
Or is BGP chasing its tail
down a rathole of increasing losses?

That was the question, but not now. The significance of management's "we will not throw money down the internet hole" statement is that they will largely let Borders sell itself by just being there locally AND on the internet. So the big marketing expense, massive associates programs, deals with other money-losing internet sites, etc. will not be pursued unless there's a reasonable expectation of a positive risk-adjusted net present value to these activities. As long as I thought they were going to go kamikaze to kamikaze with Amazon, I just had them in my peripheral vision. But their strategy shift/statement brought Borders well within my value range.

Mike
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