The Barnes & Noble, Inc. (BKS) Saga Continues

Page 1 of 2

Barnes Group Inc. (NYSE:B)Barnes & Noble, Inc. (NYSE:BKS) has been a comedy, a thriller, a drama, and a horror. A lack of direction and fierce competition have been the biggest problems. We’ll take a simple and logical look at the company’s future potential.

Consumer trends

Today’s consumer wants value and convenience, not excess. This leads us directly to Target Corporation (NYSE:TGT) and Wal-Mart Stores, Inc. (NYSE:WMT). Though many people don’t realize these are considerable threats to Barnes & Noble, Inc. (NYSE:BKS)’s physical bookstores, give it time.

If you have ventured into a Target Corporation (NYSE:TGT) recently, then you probably noticed an intriguing book section. What you might not have noticed is that you can only find popular titles — titles that sell. If more readers who prefers physical books to reading tablets became aware of this, they would likely take advantage of what Target has to offer.

Wal-Mart Stores, Inc. (NYSE:WMT)’s book section isn’t as impressive as Target’s appearance-wise, but it makes up for the lack of appeal with its location, which is right near the registers at the front of the store. Wal-Mart’s book section is also small, but the company likes to grow in a physical sense, so there’s no telling what the future might hold.

While Target Corporation (NYSE:TGT) and Wal-Mart Stores, Inc. (NYSE:WMT) aren’t large current threats to Barnes & Noble, Inc. (NYSE:BKS), that has the potential to change in the future.

If you want even better prices on your books, then you can visit a dollar store. The selection will be limited, but most people just want something to read in order to take their mind off their everyday problems. Believe it or not, you can find some quality titles at dollar stores, even hardcovers that once sold for $29.95. And, yes, you will only pay $1 for each of them — in most cases.

A wise shopper will look at this as a great opportunity to purchase many books for $1, realizing that at least one of them is likely to be enjoyed. Why take a chance on one book when you can buy a basket of books for half the price?

Then there’s Amazon.com, Inc. (NASDAQ:AMZN), the destroyer of other businesses’ hopes and aspirations. Amazon has a lot more online traffic than Barnes & Noble, Inc. (NYSE:BKS), and many books on Amazon are sold at discounted prices. That said, Amazon currently trades at 87 times forward earnings while sporting a weak profit margin of -0.14%. While growth has consistently impressed, Amazon.com, Inc. (NASDAQ:AMZN) remains a high-risk investment.

Wal-Mart and Target are both trading at 13 times forward earnings, and they both impress with profit margins of 3.6% and 3.8%, respectively. Furthermore, Wal-Mart yields 2.6% and Target yields 2.5%, whereas Barnes & Noble, Inc. (NYSE:BKS) and Amazon don’t offer any yield. Wal-Mart and Target are likely to be the safest options of all aforementioned companies going forward.

When the company you’re investing in is battling against the likes of Wal-Mart, Target, and Amazon.com, Inc. (NASDAQ:AMZN), the nightmares you suffer from at night are justifiable.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!