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

To: Glenn Petersen who wrote (1037)	5/10/1999 2:59:00 AM
From: Daskin	Read Replies (1) \| Respond to of 1691

For now you are right about the performance in terms of sales to loss ratio. However, BNBN's loss is due to they spend millions to make deal with AOL, CNN,...etc., to become their exclusive book seller. I am not sure these deals are one time charge or annual. If it is one time charge, BNBN's financial status should not get worse in the future. It also depends on how helpful those deals are. Basically BNBN is after Amazon, that is why they try to match Amazon's prices. Personally I would prefer BNBN use the money they spent on AOL to lower their prices. I don't see advertising on AOL or CNN worth that much. Who really pay attention to those banners on web page? Moreover, consumers don't care which store to go to, they only care about prices. The same book sold at Amazon or BN for 70 bucks only sold 40 dollars at BUY.COM or Bookamillion. Thus, I would take BKS as a short term play rather than long. Definitely we are looking for a hype here.