Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of bookseller Barnes & Noble
So what: In the expectations game, B&N was a loser this quarter. Though earnings per share of $1.00 were within the company's guidance range of $0.90 to $1.20, it was well short of the $1.13 that Wall Street was looking for. Revenue of $2.3 billion was also slightly softer than expected. But the disappointments only started there.
The company also announced that it's suspending its dividend, a move that investors can't be happy about, particularly as more investors are looking to dividends to fuel their portfolios. And we all know how much investors like guidance, right? Well, B&N isn't giving any. Thanks to the Borders
Now what: I'm getting a picture of Ice-T running madly through the woods, trying his best to survive in the classic B-movie Surviving the Game. You're obviously rooting for him, but the odds are heavily stacked against him. For B&N, it's got its Nook e-book reader and, though still unprofitable, B&N's website is at least growing quickly. But Amazon.com
In the end, Ice-T made it. You kind of knew that would happen because it's Ice-T and he's generally a tough so-and-so. But this isn't a movie, and though I'm not calling for the disappearance of B&N, I'm also not betting on a shining future.
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