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

To: Satellite Mike who wrote (307)	4/21/1999 10:07:00 PM
From: Michael Burry	Respond to of 411

Where's the mistake? Evidently there was a leak of some sort, and the decision was probably made last week, according to several unreliable-but-why-would-they-lie sources. Announced officially today in the last 24 hrs. Don't see a mistake. Doesn't really matter. Mike

To: Satellite Mike who wrote (307)	4/21/1999 10:33:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 411

And now for a completely different take on Borders: fool.com I'm not sure where they find support for several of their statements, their criticism of BGP cash flow being the most blatant. But you would expect that a site that has a licensing agreement with Amazon, and that holds stock in Amazon, would not see things BGP's way. Mike

To: Satellite Mike who wrote (307)	4/24/1999 3:33:00 PM
From: Fate	Respond to of 411

From advisor.com BGP/AMZN merger discussion New York - Borders Group Inc. said Chief Executive > Philip Pfeffer has > resigned after five months at the No. 2 U.S. book > retailer, whose shares > have lagged those of its more Internet-focused > rival, Barnes & Noble Inc. > According to sources close to the Company, Pfeffer > resigned over internal > and political infighting over direction of the > Company's failing Internet > strategy. > Pfeffer was a key driver behind Border's current > Internet strategy. > The-Adviser.com is working on additional details and > the impact that his > departure would have on a merger with Amazon.com. > > Updated Brief Issued New York 3/29/99- This past > weekend, our analysts went > fishing - bottom fishing that is to Border's book > stores. We spent time > discussing operations with management. They did not > seem concerned that > their stock has declined from $41 to nearly $14 in > less than one year. This > at the same time that Amazon.com's stock increased > from $12 to $139 > (adjusted for splits). The market cap for Borders > was only $1 billion > compared with Amazon.com's which has over $22 > billion. > > Despite this troublesome divergence, Borders > management seemed happy and > welcomed us in. They offered us a complimentary cup > of hot coffee and > danish. Asked us if we wanted to sit near the piano > player who was playing > captive to a full crowd. We talked operations and > we talked same store > sales increases. It was only after our second cup of > coffee that we spoke > about a possible Borders and Amazon.com merger. We > asked them when Borders > management was going to stop wasting shareholder's > money on their online > book store. > > Management of Borders was surprisingly intrigued. > Despite an 18.1% year to > year increase in per share earnings their online > activities generated a loss > of $.13 per share or almost 100% more than the prior > year. The Internet > is clearly resulting in a lack of management > attention away from supply side > management, retail marketing and international > growth. The $.13 per share > loss was generate by a revenue run-rate less than > $14 million. > > The synergies are clear. Amazon.com needs to expand > into a retail presence. > They are not going to do it with Barnes and Nobles. > Border's needs to have > an Internet presence and can't afford to spend the > funds to do so. With a > price of $14 and a PE ratio of $13 - we would pare > some of our Amazon > portfolio and put some on Borders.