Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, book retailer Borders Group (NYSE:BGP) has received a distressing two-star ranking.

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

Borders facts

Headquarters (founded)

Ann Arbor, Mich. (1971)

Market Cap

$172.47 million


Specialty Stores

TTM Revenue

$3.28 billion


CEO Ron Marshall (since January 2009)

CFO Mark Bierley (since January 2009)

TTM Return on Equity


2-Month Price Change


Competitors (NASDAQ:AMZN)

Barnes & Noble (NYSE:BKS)

CAPS members bearish on BGP also bearish on

General Motors (NYSE:GM)

Sears Holdings (NASDAQ:SHLD)

CAPS members bullish on BGP bullish on

Starbucks (NASDAQ:SBUX)

General Electric (NYSE:GE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 35% of the 336 members who have rated Borders believe the stock will underperform the S&P 500 going forward. These bears include All-Star kristm, who is ranked in the top 0.5% of our community, and KamranatUCLA.

Last week, kristm brought the stock's seemingly insane performance to our community's attention:

Shot up today on virtually no news, and has a P/E over 40. Oh, also it's a bookstore not named Amazon or Barnes & Noble. Not sure where the optimism is coming from, book retailing isn't exactly a growth business.

In a pitch from three days earlier, KamranatUCLA also tried to read into the price run:

[T]his stock has gone up like a rocket in the past few weeks...from 50 cents to now 2.50. I don't see any fundamental change in ways people do business with book stores. ... How can they make money of those people? They are not [Starbucks] and they pay huge rents for those stores. We have to be realistic...those bookstores wont be what they were once in the 80s or 90s...and even then I wonder how they made even money...OK they sold some books that they don't even sell now because people read everything they want on the Internet.

What do you think about Borders, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Amazon and Starbucks are Motley Fool Stock Advisor selections. Starbucks and Sears Holdings are Motley Fool Inside Value recommendations. The Fool owns shares of Starbucks. The Fool's disclosure policy always gets a perfect score.