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

To: American Spirit who wrote (1052)	5/10/1999 2:47:00 PM
From: LakesideTrader	Read Replies (1) \| Respond to of 1691

BGP up 1 1/4 today. News anyone is aware of?

To: American Spirit who wrote (1052)	5/10/1999 3:23:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 1691

Doesn't it occur to anybody on this thread that BNBN by itself is a loser? Its true value is in the wholesale volume it will generate. It will generate a huge business for Bertelsman and BKS. Consider some facts for the moment. Books are not fungible. That means that there are lots of actions that are carried out by people on an individual basis. Unpacking a shipment, and repacking on a one by one basis. That means that costs will be high and should behave as fully variable costs because the major component will be labor. If you would take the time to examine the financials in the 10-Ks you would realize just how much profit BNBN has cost BKS. That means that BKS will become more profitable by spinning off BNBN and eventually having a secondary offering and unloading its entire stake. This move is analogous to the drug companies spinning off their R&D arms. The difference, of course, is that BNBN will be able to stand on its own for a considerable period of time owing to the differential timing of cash movements. But just as AMZN will not be able to generate profit, neither will BNBN. And when the inevitable downturn in business comes both will bleed cash at a prodigious rate. TTFN, CTC

To: American Spirit who wrote (1052)	5/10/1999 4:42:00 PM
From: Stephen	Read Replies (2) \| Respond to of 1691

This may have been posted ... but for anyone interested Montgomery funds has a Global long/short fund run by two women by the name of Kukacka & Ee. They mention two or three current favourites for being on the long & short side ... and BKS is one of their shorts. The article was reproduced form Barrons, so many of you may have already seen it. BKS notwithstanding .... I like their style !!. I have used recent strength to liquidate my position in BKS ... so you guys on the long side should see this fly now !! Good luck ... Stephen