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

To: American Spirit who wrote (763)	4/19/1999 1:41:00 AM
From: American Spirit	Read Replies (3) \| Respond to of 1691

* Here's the intel from Yahoo BKS has a market cap of just over 2 BILLION $ They sell are expected to make $1.21 a share this year. Next year $1.71 BKS owns 50% of the upcoming IPO BNBN (Barnesandnoble.com) they sold the other 50% to Bertlesmann for $200 million and between the two of them they are going to offer 20% to the public. The IPO is scheduled for the week of April 26th. The lead underwriters are Merill Lynch and Goldman Sachs (heavy hitters). The offering amount is in excess of 1 BILLION $ This IPO has been called 'the mother of ALL IPO's!' The demand will be incredible. If IVIL ran up over 300%, and MTKW ran up over 400% and EBAY is up over 1500% (or something like that), what do you think BNBN will come in at? I'm guessing over 400%. But, let's be conservative and say 300%. Assuming they don't raise the price of the IPO, or the # of shares they are offering, that will give BNBN a market cap of over 4 BILLION $. Since BKS owns 50% of BNBN, that makes their stake in BNBN - 2 BILLION $. That means that even if they didn't have the 100's of retail stores and super bookstores that they do, and they JUST had BNBN, the stock would be trading at...$33.00 a share. So, basically, BKS is worth DOUBLE what it is currenly trading at. Just remember, AMZN has a market cap of 23 BILLION $ Amzn is the 2nd most vistited website, BKS is 4th. I don't think the market cap difference between #2 and #4 should be 21 BILLION $. Do you? --------------------------------------------------------------------------------