Barnes & Noble (BKS) a Top Stock? Barron's Says 'Yes'
Tweet
Share
E-mail
Get Alerts BKS Hot Sheet
Join SI Premium – FREE
Barnes & Noble, Inc. (NYSE: BKS) is seeing solid upside Monday after a surprising recommendation for the beleaguered book retailer.
Over the weekend, Barron's named Barnes & Noble as one of its 10 Favorite Stocks for 2013.
Barron's notes the company's bookstore division control almost two-thirds of the retail book space in the U.S. and its Nook unit is holding its own versus behemoths like Amazon.com and Apple. These positive aren't reflected in Barnes & Noble's depressed stock price, Barron's says.
Generating $300 million of pretax cash flow, the value of the retail stores could be worth the the entire current stock price, Barron's says.
While the nook unit is currently losing money, it too appears undervalued. Microsoft (NASDAQ: MSFT) invested $300 million this year for a 17.6% stake in the division, implying that Barnes & Noble's 82.4% of Nook is worth $1.4 billion, or $24 a share, Barron's notes. John Malone's Liberty Media (NASDAQ: LMCA) also likes the company, having invested $200 million of Barnes & Noble convertible preferred stock.
Shares of Barnes & Noble are up 2.45% early Monday to $15.07.
Over the weekend, Barron's named Barnes & Noble as one of its 10 Favorite Stocks for 2013.
Barron's notes the company's bookstore division control almost two-thirds of the retail book space in the U.S. and its Nook unit is holding its own versus behemoths like Amazon.com and Apple. These positive aren't reflected in Barnes & Noble's depressed stock price, Barron's says.
Generating $300 million of pretax cash flow, the value of the retail stores could be worth the the entire current stock price, Barron's says.
While the nook unit is currently losing money, it too appears undervalued. Microsoft (NASDAQ: MSFT) invested $300 million this year for a 17.6% stake in the division, implying that Barnes & Noble's 82.4% of Nook is worth $1.4 billion, or $24 a share, Barron's notes. John Malone's Liberty Media (NASDAQ: LMCA) also likes the company, having invested $200 million of Barnes & Noble convertible preferred stock.
Shares of Barnes & Noble are up 2.45% early Monday to $15.07.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CVS Health names JPMorgan executive to board, Robbins exits
- Interactive Brokers adds SafetyPay funding for Latin America clients
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Barron'sSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
