Why Barnes & Noble Is Poised to Keep Plunging

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 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

$778.9 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 / $465.7 million

Competitors

Amazon.com
Apple
Books-A-Million


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

On CAPS, 53% of the 667 members who have rated Barnes & Noble believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star MrOneHundred, succinctly summed up the Barnes & Noble bear case for our community:

The [Nook] has lost any competitive advantage to a swath of competitors (chiefly the iPad and Amazon). ... Even in the college environment, retailers are shifting to online classrooms which will gravely hurt Barnes & Noble. Someone close to me used to work at one of their locations and would always have a story to tell concerning how the administration was bad [too]. Another reason I would avoid this stock. Some other (more quantitative figures) that are important:

ROA: -1.00 (Industry 5.80)
ROE: -4.10 (Industry 10.20) ...

Thumbs and Big Toes Down!

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Apple. The Motley Fool owns shares of Amazon.com and Apple. 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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