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.

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

To: Daskin who wrote (1416)	5/25/1999 4:26:00 PM
From: Daskin	Read Replies (1) \| Respond to of 1691

Received a positive review from CBS (If you still care): Although Barnesandnoble.com sales lag well behind those of rival Amazon.com (AMZN: news, msgs), analyst Steven Tuen still thinks the company has a decent chance for success. "They can still find their own space," said Tuen, research director at IPO Value Monitor. "Amazon is really moving away from the book business." Amazon now sells CDs and videotapes and has invested in numerous other e-commerce companies, such as Drugstore.com; HomeGrocer.com, which it bought outright; and Pets.com. At an initial market valuation of $2.5 billion, not including outstanding options, Barnesandnoble.com will be valued at 40.5 times its 1998 sales, compared to the 30.5 price-to-1998 sales multiple Amazon.com boasts. Goldman Sachs and Merrill Lynch are the co-lead managers of the Barnesandnoble.com IPO.

To: Daskin who wrote (1416)	5/25/1999 5:55:00 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 1691

As Max noted in a previous post, my analysis assumes a "rational marketplace." Interestingly enough, BGP (the anti-Amazon) went up today. Assume that the BKS bricks and mortar are worth 20% more than the BGP bricks & mortar. Based of today's close, BGP has a market cap of approximately $1,349.0 MM. Add 20% to that and the BKS bricks and mortar have a value of approximately $1,618.8 MM, or $23.59 per share. With BNBN at $22 15/16, BKS' discounted interest in BNBN is equal to $11.54 per share. (140.0 MM shares multiplied by 22 15/16 multiplied by .411 multiplied by .60 divided by 68.626 MM shares = $11.54.) Add that to the bricks and mortar valuation and you have a valuation of $35.13. The above is JMHO. I ended up holding my BKS shares.