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Asian shares were mostly higher Monday with S.Korean shares helped by upbeat economics.Bank failures in US exceed 100 for this year, most closings since 1992.China's September coal imports increase 7% from August as economy recoversOil prices slipped to near $80 a barrel in AsiaDollar falls versus Euro as recovery signs, stock gains sap safety demand.Japan to punish BNP Paribas's unit over convertible bond, share price manipulation.Japan's PM Hatoyama says recovery 'unpredictable,’ unemployment may worsen.S Korea's Q3 GDP rises 2.9% - fastest quarterly pace in more than seven years.SEC considering filing securities fraud charges against ICAP's US subsidiary.[More...]
Tobacco companies jointly filed a lawsuit in Kentucky against the U.S. and the Food and Drug Administration, claiming a law signed by President Obama in June of this year imposes "unprecedented restrictions" on First Amendments Rights.[More...]
While the markets move daily to new announcements during earnings season, the true impact of earnings announcements aren't truly represented in a stock until investors have had a chance to digest information and truly analyze a company's performance, especially as it relates to peers. Now that earnings season has passed, we take a look at the booksellers, looking at the earnings and performance since.
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Bookseller Barnes & Noble, Inc. (BKS) reported a decline in profit for the second quarter, hurt mainly by lower sales at its Barnes & Noble stores, the books division, due to weak retail traffic. Further, the New York-based Fortune 500 company said it expects a drop in third-quarter comparable store sales, but maintained its fiscal 2009 forecast for comparable store sales decline. Investors seem to be relatively even on the announcement, as the stock remains around the $20.50, where it has been most of the month.
Online Bookseller Amazon.com Inc. (AMZN) in late July reported a 10% decline in its second-quarter profit to $142 million or $0.32 per share, mainly hurt by a settlement with Toysrus.com. The Seattle, Washington-based company's net sales increased 14% to $4.65 billion from $4.06 billion last year, while excluding the negative impact from foreign exchange rates, net sales would have grown 20%. The company was trading well in the $90s when its earnings brought the stock back to earth. It flirted with $80 before settling in around $85.
Books-A-Million Inc. (BAMM), meanwhile was trading in the $11 range when its earnings announcement catapulted the stock to nearly $15, while Borders Group, Inc. (BGP) has plummetted post-earnings from nearly $3.75 to under $3 at some points.
US stocks finished with gains on Tuesday after better-than-expected consumer confidence and housing data boosted investor sentiment. Stocks also rose on reports that President Obama is nominating Federal Reserve chief Ben Bernanke for a second term in office.[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?
