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Non-Tech : Barnes & Noble (BKS) -- Ignore unavailable to you. Want to Upgrade?

To: Retired@35 who wrote (619)	4/9/1999 1:39:00 PM
From: SwampDogg	Read Replies (1) \| Respond to of 1691

No...probably not If BKS holders got .COM stock than the frenzy of the IPO would be reduced.

To: Retired@35 who wrote (619)	4/9/1999 11:25:00 PM
From: ElTombo	Read Replies (2) \| Respond to of 1691

Reply to T Daly: BKS is selling 15-20% of its stake in the Barnes&Noble.com in this IPO. Shareholders don't get any stock, nor do they get the opportunity to buy it at the IPO price. BKS receives the cash from the sale of BNBN stock at the IPO price($200 million I think). After the IPO it will own about 40% of BNBN. In theory, this should increase the value of BKS stock because: 1. Everyone expects the BNBN IPO to go through the roof (Compare AMZN valued at approximately $30 billion. Also, recent internet IPOs have been rising 100-200% above their IPO prices on the first day). 2. 40% of BNBN's value is owned by BKS. 3. BKS is currently valued at only $2.5 billion (This includes its current 50% stake in BNBN, and all its brick & mortar businesses). I think there is a very good chance that BKS will go higher from here. The only question is when to sell. If you think the IPO is overhyped, and it will disappoint expectations, you should sell just before the IPO. If you think the IPO will set records, and blow everyone out of the water, you should sell just after the IPO. If you think BNBN is a great company which will grab market share from Amazon and other competitors in the future, you should hold BKS long term, and probably buy some BNBN too. ElTombo P.S. Some thoughts on BNBN value. $200 million for 10 - 15% of the company at IPO price suggests value of $1.3 - $2.0 billion. If the stock doubles on opening day, (not an uncommon occurrence for net stocks) that would be $2.7 - $4.0 billion. BKS share of this(40%) is $1.1 - $1.6 billion plus half of the $200 million in cash. P.P.S. Some recent internet IPOs have been raising their IPO price shortly before they go public because of the extremely hot market for internet IPOs. Anyone think this will happen for BNBN?