I really, really don't like one-product companies. Sometimes they get bought out, and sometimes that one product goes on to be a superstar, but the Coca-Colas
As we already knew from Barnes & Noble
In the wake of this quarter and current conditions, management took down guidance for the rest of the year by a fairly meaningful degree. I'm not sure that you can really point to good news in that, other than the fact that it perhaps resets expectations to a more realistic level.
As time goes on, I find it more difficult to stay excited about Borders as a long-term value idea. Sure, people read and will continue to do so. And while there may not be another series of books like Harry Potter for some time, there will always be something coming along sooner or later. And I'll even go one further and give Borders the benefit of the doubt on the ongoing store remodeling.
But at the end of it all, Borders just isn't the best bookseller out there. Moreover, book retailing is hardly the best sector of retail. So, here you have what is not-the-best company in what is not-the-best sector in an environment where economic commentators are increasingly worried about consumer spending. Seems to me there are easier ways of making a buck in the market today.
For more Foolish thoughts on retail:
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).
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