Question

Analyze the Barnes & Noble Financial Statements and make an assessment of what you believe the...

Analyze the Barnes & Noble Financial Statements and make an assessment of what you believe the stock price should be. If you were preparing a stock analysts report on whether Investors should: BUY HOLD SELL The shares of stock at the current market price and why. analysts recommendation report based on your analysis.

Homework Answers

Answer #1
  • Barnes & Noble is looking as cheap as ever, measured both in terms of decreasing valuation multiples and rising dividend yield. But the recent earnings release suggests the company remains in dire financial condition, with sales declining and margins contracting further. Considering the sizable risks, I suggest to resist the temptation and turn down high-yielding, low-multiple shares of BKS. Shares of B&N are having a rough session after earnings disappointed investors. Lack of coherent vision remains a major problem. Inability to grow any semblance of an e-commerce business is a disaster for the company.
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