Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (6937)	4/25/1999 6:26:00 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78476

Mike, Couldn't locate full article or source quote on studies projecting 25% would return to traditional retail if sales tax advantage were eliminated. I just made of note of it in my files, sorry. Also did a quick news search, but couldn't turn it up...but I'm sure it was this year. I can say with certainty though, that there's currently a 3 year moratorium on taxes starting in 1998, so any impact of sales tax on net sales would be down the road. Possible scenario: Over the next 2 years Borders closes a chunk of those mall stores that are marginal or don't work...and trades flat to down as earnings hits come thru for the closings. They find approaches that work in rest of stores. The stock bottoms in 2 - 2.5 years...could be a buy in anticipation of shift from tax on net sales. I agree that people like to browse bookstores...at least superstores like Borders and B & N. And some of that browsing translates into sales...but sales for whom? As more consumers become aware of lower cost availability on the net, will they continue to pay a significant premium to buy locally? I disagree with those who think all life on earth migrates to the net, but this is a vulnerable category.