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Non-Tech : Barnes & Noble (BKS)
BKS 6.4900.0%Aug 19 5:00 PM EST

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To: Glenn Petersen who wrote (1037)5/10/1999 2:59:00 AM
From: Daskin  Read Replies (1) of 1691
 
For now you are right about the performance in terms of sales to
loss ratio. However, BNBN's loss is due to they spend millions to
make deal with AOL, CNN,...etc., to become their exclusive book
seller. I am not sure these deals are one time charge or annual. If
it is one time charge, BNBN's financial status should not get
worse in the future. It also depends on how helpful those deals
are. Basically BNBN is after Amazon, that is why they try to
match Amazon's prices. Personally I would prefer BNBN use the
money they spent on AOL to lower their prices. I don't see advertising on AOL or CNN worth that much. Who really pay attention to those banners on web page? Moreover, consumers don't care which store to go to, they only care about prices. The same book sold at Amazon or BN for 70 bucks only sold 40 dollars at BUY.COM or Bookamillion. Thus, I would take BKS as a short term play rather than long. Definitely we are looking for a hype here.
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