As far as I'm concerned, that feels like the correct reaction to the story; I certainly would be in no rush to buy the company. The bookseller lost an adjusted 89 cents per share. Analysts were counting on a loss of only 81 cents per share.
Besides missing expectations, same-store sales at the company's regular brick-and-mortar asset decreased over 3% even as comps at its college bookstores experienced an increase of 2.9% during the quarter.
The shares fell below the 52-week low of $15.40. The one-year chart almost seems to imply that, after the next pullback, the stock has a fair shot of rising again.
I don't want to play that game with Barnes & Noble. I don't think the fundamentals are too impressive here, and besides, if you want a retailer that sells books, what about online juggernaut Amazon (AMZN)? I would look at Amazon before I would look at Barnes & Noble. And going back to the preview piece, Trey Thoelcke mentioned concerns over pricing for the Nook, as well as the long-term growth rate.
Yeah, I have to take a pass on this one, even though I do think we may witness a bounce in the stock. It can bounce all it wants; for me, it's simply too risky.
Disclosure: I don't own any company mentioned; positions can change without notice.