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Why Barnes & Noble Is Poised to Pull Back

By Brian D. Pacampara, CFA - Apr 1, 2013 at 5:20PM

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Market-lagging returns could be written in this 1-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, book retailer Barnes & Noble (BKS) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Barnes & Noble and see what CAPS investors are saying about the stock right now.

Barnes & Noble facts

  

Headquarters (founded)

New York, N.Y. (1986)

Market Cap

$971.9 million

Industry

Specialty stores

Trailing-12-Month Revenue

$6.9 billion

Management

Founder/Chairman Leonard Riggio

President/CEO William Lynch

Return on Equity (average, past 3 years)

(7.2%)

Cash/Debt

$213.6 million/$155.8 million

Competitors

Amazon.com 

Apple

Books-A-Million

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 55% of the 675 members who have rated Barnes & Noble believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, adamlevy, succinctly summed up the Barnes & Noble bear case for our community: "Struggling retail segments in both brick-and-mortar and the Nook division. The only saving grace for this company is licensing content with its publishing partners, which isn't really a core part of its business model (yet)."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Barnes & Noble, Inc. Stock Quote
Barnes & Noble, Inc.
BKS

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