Borders wins the earnings game, but it's still a loser in my book

According to the press release, cash from operations has improved at the chain. I love to see cash flow going up, but again, you have to put things in perspective. Sales dipped 13% in the quarter, and same-store sales fell off the proverbial cliff. And guidance going forward is not comforting. Management expects further difficulties.

Borders is going to need one heck of a turnaround plan. It'll have to come up with some new marketing schemes and better cost-cutting initiatives. I'm sure you've noticed the stock price: it's under a buck per share. That means you need to stay away. I'm sure there are many speculators out there betting on the appearance of news flow that might cause a pop here and there. Sure, that happens. But I think buying Borders is simply giving in to a gambling impulse. I really don't see the retailer coming back in the near future. Maybe I'll be wrong about that, but I'd rather go with stronger companies and higher-priced stocks in this trading/investing environment. I just don't want to be holding the stock the day they write a headline that goes something like "Closing the Book on Borders."

Disclosure: I don't own any company mentioned; positions can change without notice.