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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: Glenn Petersen who wrote (1446)	5/30/1999 12:09:00 AM
From: American Spirit	Read Replies (1) of 1691

Agreed. BKS deserves a better valuation and will soon get it. The price has been pummeled after it became clear it wasn't going to zoom on the IPO. Dumping led to more dumping. The earnings disappointment hurt too, though most of it was due to BNBN expenses. Also the timing was bad and all the nets were getting hit hard. Retailers weren't faring any better, though the economy is strong and the retail sector particularly healthy. Inflation ought to go down now that gas prices are sinking. It was gasoline's unprecedented spike which drove up inflation worries, rate hike anxiety and market decline. I believe the present bearishness is at or near its peak and that many stocks including BKS and BNBN are great values now. Once the buyers come back everything should rally and suddenly all the negativity will vanish like it never existed. $35 should be attainable then. That is why I am holding and buying on further dips.I believe any dips here will be very short-lived. I agree also that BMG is putting itself in a strong position, though I doubt Barron's claim that major writers and publishing houses will start selling directly. Why take on the marketing expenses and hassle when you can use BNBN or the others? They are the distributors and it's a complicated infrastructure to set up. If Stephen King or Random House were to sell directly they would have advertise all over the place, hire people, form new businesses. Would the trouble and cost be worth it? Not really. BKS pays AOL 40 mill a year to be on their front page and be their exclusive salesman. That cannot be duplicated by anyone else. I am a writer myself and would much rather pay the sales commission than go to all the trouble. Writers like to write and live personal lives. Becoming net marketing companies won't attract many, and those that do get into it will give up soon once they figure out that they're not reaching their entire audience. IMHO of course.

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