In fairness, shareholders have a right to be relieved that Borders reported a much less harrowing loss than observers expected. The bookseller's second-quarter net loss came in at $11.3 million, or $0.19 per share, a dime better than analysts' grim projections.
It's also good to hear that Borders has pared back its debt burden. Not long ago, the company spun a scary story about a potential liquidity crunch, and had to obtain financing from major shareholder Pershing Square Capital Management.
Still, like Gap's
The lousy economy is already driving more and more people to discounters like Target
For all of today's euphoria, this still wasn't a profitable quarter for Borders -- just more of the same. If anything, I think today's stock surge might let some investors close the book on Borders while they can. Anyone else determined to hang on to this story should look for it in the "horror" section.
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