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Non-Tech : Barnes & Noble (BKS)

BKS 6.490

0.0%

Aug 19 5:00 PM EST

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To: Daskin who wrote (792)	4/20/1999 10:38:00 PM
From: Daskin	Read Replies (1) of 1691

From CNN(Repost): Analysts believe the spin-off will allow Barnes & Noble to keep valuations high for both businesses, even if the Web site continues to lose money. "Barnes & Noble is hoping [the Web site] will be subjected to the same rules as Amazon is as an Internet company, where their stock is trading at an exorbitant price while the company is losing a lot of money," said Erica Rugullies, electronic commerce analyst at Giga Information Group. "It also provides them with more protection, so they don't keep losing money through their Internet site and have their stock price go down."If you look at the valuation of Amazon, their stock is trading at eight times revenues," said Amy Ryan, analyst at Prudential Securities. "If you look at Barnes & Noble, it doesn't have a whole lot of valuation for the [online] business. By spinning off the barnesandnoble.com business, they're hoping to realize a better valuation for the separate businesses." Either positive or negative way of thinking, barnesandnoble.com's IPO will benefit BKS. IMHO.

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