Why Barnes & Noble Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, book retailer Barnes & Noble (NYS: BKS) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Barnes & Noble and see what CAPS investors are saying about the stock right now.

Barnes & Noble facts

  

Headquarters (founded)

New York (1986)

Market Cap

$856.7 million

Industry

Specialty stores

Trailing-12-Month Revenue

$7.2 billion

Management

Founder/Chairman Leonard Riggio
CEO William Lynch

Return on Equity (average, past 3 years)

(4.8%)

Cash/Debt

$471.0 million / $338.4 million

Competitors

Amazon.com (NAS: AMZN)
Apple (NAS: AAPL)
Books-A-Million (NAS: BAMM)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 54% of the 663 members who have rated Barnes & Noble believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, MrReliaBull, succinctly summed up the Barnes & Noble bear case for our community:

Anti brick-and-mortar play. Everything that e-commerce has done for the consumer (no more physical CDs, less physical books and DVD's) has come at Barnes & Noble's expense. They've shown their semi-nimble, but with so much overhead to subsidize, I feel they're too shackled to be successful moving forward.

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The article Why Barnes & Noble Is Poised to Plunge originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Amazon.com. Motley Fool newsletter services recommend Apple and Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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