Stocks end marginally lower and have now declined in four of five sessions. The major averages did pare losses and made the highs of the day in afternoon action after the release of Federal Reserve meeting minutes. The minutes showed a more upbeat assessment of the economy from the central bank. A return to losing ways for the dollar contributed to the stock market's improvement.[More...]
Ahead of the open this morning, Borders Group Inc. (BGP: sentiment, chart, options) narrowed its third-quarter loss to 63 cents per share from %242.90 per share last year...(Read More)
“But while media products still account for a majority of Amazon’s sales, the company’s added dozens of new products. It’s become the online Walmart, not the online Borders… Amazingly, it is much lower than Walmart, which allows it to undercut Walmart’s prices. That’s unheard of until now. Periodically, you’ll hear Walmart slicing prices…With a retailer like Target or Walmart we can look at the number of stores they have and figure out how many more they have before they reach saturation and can’t grow anymore…” — CNBC’s Mad Money 11/23/2009[More...]
Borders Group, Inc. (NYSE:BGP) shares got hit before the close today finshing down 8% at $4.69. Despite a new online borders.com re-launched to sell their books and goods without help from Amazon.com, Wall Street continues to punish BGP shares. Why do we care? How about the 25 million Borders Rewards customers that can shop online now, and not at Amazon.
Borders Group, Inc. (Public, NYSE:BGP) shares took a huge hit on Thursday, ending the day down 28% at $5.07 a share. The news of Borders looking at "future strategies", thus selling the company made investors bail like no tomorrow. Shareholders couldn't sell shares fast enough, 26.8 million shares were traded on Thursday, compared the usual volume of 1.44 million BGP shares. So now what? Follow the Masters into the dumpster.
Borders fourth-quarter results that were delayed for one day,reported net income of $64.7 million, or $1.10 a share, compared with a loss of $73.6 million, or $1.22, in the same period last year. Revenue fell 2 percent to $1.35 billion for the quarter ended Feb. 2. Analysts polled by Thomson Financial expected profits of $1.42 per share on sales of $1.37 billion.
Borders has until Jan. 15 to require Pershing Square to pay $125 million for its international business. But the company said it must pursue the sale of those operations elsewhere before any deal with Pershing.
Borders is now considering options including the sale of the company or certain divisions, and that it had lined up $42.5 million in financing to help it keep running through the year.
In this tough economy, Borders is going to have a hard time staying in business when you go online and buy books at Amazon.com (AMZN), eBay.com (EBAY), or stroll into a better bookstore like Barnes & Noble, Inc. (Public, NYSE:BKS).
For those of you thinking you can cash in on Borders dividend and wait for a potential sale, hoping shares may jump - think again. Borders has suspended its quarterly dividend and all that bad news sent shares down 44% at one point.
Borders is a sitting duck now, with the recession in full swing, their shares are going to keep falling. Borders isn't a great bookstore, they're no better than Costco's (COST) table of random books for sale pilled all over the place. There's nothing special about strolling into a Borders, so why would book lovers keep heading to Borders?
They won't.
The Masters expect the powers that be to push Borders shares to a new 52-week low next week. Depending how low they get, there may be a bounce opportunity, but for now, just watch the bonfire of books go up in flames.
Panel-Kristin Bentz of RealMoney.com and Evan Schuman of eweek.com on Retail Stocks.
Andrew goes on a RANT about the mess with Freddie Mac and Fannie Mae. This mortgage fiasco is bringing out a bit of steam from his ears. What happened with the Analysts? Why have they not watched our backs? Why have they let us flounder? Let's get ready to RUMBLE....Something has gotta give!
Borders Group, Inc. (
Borders is a sitting duck now, with the recession in full swing, their shares are going to keep falling. Borders isn't a great bookstore, they're no better than Costco's (COST) table of random books for sale pilled all over the place. There's nothing special about strolling into a Borders, so why would book lovers keep heading to Borders?
