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Non-Tech : Borders Group (BGP) -- Ignore unavailable to you. Want to Upgrade?

To: CrazyTrain who wrote (372)	8/18/1999 8:16:00 PM
From: Glenn Petersen	Respond to of 411

A loss of $.03 per Yahoo: biz.yahoo.com The CEO of BGP will be on CNBC's "Business Center" tomorrow evening: jetson.cnbc.com

To: CrazyTrain who wrote (372)	8/22/1999 11:53:00 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 411

Alan Snyder, the founder and president of Snyder Capital Management, has some nice things to say about BGP in the August 23, 1999 issue of "Barron's." Q. Okay, tell us some stories. A. Borders Group, the big bookstore chain, fits right into what I said about traditional versus Internet retailers. Over the past year, Borders' stock has been decimated by fears that the growth of companies like Amazon.com would totally destroy their business. It hasn't happened. Borders has about 250 superstores, plus another 900 bookstores under the Waldenbooks name. All told, they sell about $3 billion a year of books and music. Their same store sales have continued to rise despite Amazon's success. Amazon's annualized sales are just under $2 billion, they're losing tens of millions of dollars per quarter and their market cap is 19 times Borders'. As we go into different Borders stores, especially superstores, around the country, they're usually fairly packed. They have cafes and huge magazine racks. The average consumer generally doesn't know what book he wants to buy. It's almost a social event to go into a Borders and browse and hang out. Borders has a brand name that's known nationwide, real earnings that are growing at a nice rate, real asset value in its stores, and it sells at a very low P/E ration. They won't disappear. Q. Give us some numbers. A. The stock was recently at $13. That's a little over five times cash flow and less than 10 times our 2000 earnings estimate in a market that sells substantially higher. Borders earned $1.12 a share last year. Despite spending money on Internet marketing this year, they should report $1.15. We look for a substantial gain, to $1.40, in 2000. Q. What's that worth? A. Our target is $25, which still would value Borders below Barnes & Noble, which sells at 18 times, and way below Amazon.