Long-time writer for Barron's, Jonathan Laing, takes an deep-dive on the shares of Barnes & Noble, Inc. (NYSE:BKS).

Books are dead, right? It's all about the Internet?

Maybe. But Laing thinks BN is an ideal candidate for a buyout.

Despite a nice rally in stocks, Barnes & Noble has been a laggard. Other problems: analysts are lukewarm on the stock; Amazon.com is a threat; there is slowing consumer spending; and there is also stock option backdating concerns.

However, smart money is moving into the stock, such as from the hedge fund Pershing Square. It holds about 8% of the Barnes & Noble.

Pershing's superstar investor, Bill Ackman, likes Barnes & Noble because: the aging population bodes well for books; BN has a massive superstore footprint, which provides a Starbucks-like social experience; there is little inventory risk (because books can be returned to the publisher); and the brand is very powerful.

Also, Barnes & Noble has taken steps to restructure the cost structure and boost cash flows, offering more high-margin products (such as wrapping paper), and providing self-publishing services.

And, with no debt -- as well as the strong cash flows -- Barnes & Noble would certainly make for an attractive leverage buyout from a private equity group.

Actually, there may not be any need for private equity financing. Given the company's balance sheet and the founding family's equity stake, the deal could be done completely with debt financing.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.