To be honest, I'm not a big fan of chain bookstores. First off, my cousins own a large independent bookstore in Massachusetts, and, as long as business is good for them, my big "family discount" is safe. However, beyond my personal connections, I don't really like the way that chain bookstores control access to titles, artificially control the bestseller lists, and squeeze out independent booksellers. Frankly, it just creeps me out.

That having been said, I kind of like Barnes & Noble, Inc. (NYSE: BKS). They tend to have a good selection of bargain books, usually offer patrons some nice spaces to sit and read, and generally have a pretty broad selection. Because of this, I was a little alarmed as I watched their stock take a little tumble this week. Based on its own predictions that this year's profits will fall well short of forecasts, B&N experienced a 5% drop in value to $26.95. As of this writing, it's currently trading at $26.26.

Part of this isn't Barnes and Noble's fault. First off, without a new Harry Potter book coming out this year, every bookseller is going to have massively diminished revenues. Additionally, I imagine that book revenues will drop as many readers, facing diminished money for luxury expenditures, will rediscover the wonders of their local libraries.

On the other hand, Barnes and Noble finds itself locked in a life-and-death struggle with Borders Group, Inc. (NYSE: BGP). While B&N has a reputation for efficient stewardship of its stores, it has had to drastically drop its pricing to compete against Borders aggressive competition. Further, Borders offers a free rewards program, which is a deal when compared with the $25 that B&N charges.

Between the diminished revenues that it faces in the upcoming year, and the stiff competition that it faces from Borders', I have a feeling that Barnes and Noble's stock hasn't finished falling.