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

To: Daskin who wrote (1475)	6/3/1999 9:13:00 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 1691

The decline of BNBN has closed the gap between BKS' underlying value and its price. I thought that it might be a good time to update my valuation analysis. 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 $1,335.4 MM. Add 20% to that and the BKS bricks and mortar have a value of approximately $1,602.5 MM, or $23.35 per share. With BNBN at $16 7/8, BKS' discounted interest in BNBN is equal to $8.49 per share. (140.0 MM shares multiplied by 16 7/8 multiplied by .411 multiplied by .60 divided by 68.626 MM shares = $8.49.) Add that to the bricks and mortar valuation and you have a valuation of $31.84. The price of BGP has actually moved up a bit in recent weeks. I believe that this is a positive development for BKS as people are beginning to understand that the brick and mortar booksellers are not going to disappear,