Quote:
Originally Posted by t_roy
What world do you live in where you don't think a B&M book store is going to be in perpetual decline?
Sometimes industries are out of favor for a good reason. You can't just buy something that no one likes and tell yourself that your value investing. You have to have a compelling thesis for why everyone is wrong and have the data to back it up.
You're using a lot of buzzwords but I have a feeling that you have no concept of what they mean in reality. You can't just have laser focus and raise your margins 10%.
The more important question is whether BKS can maintain profitability while in decline (example. WDC)
I don't want to come across as someone claiming to have all the answers. I am certainly not an expert on this stuff. My interest in value investing was sparked by Ahnuld and his PRSC thesis several months back (I haven't been looking at this stuff for very long)
I used "laser focus" to represent the shift in company priorities away from Nook and back toward stabilizing the stores. Wasn't trying to imply that laser focus = automatic growth. When a company spends years pushing the Nook, it feels inevitable that aspects of the B&M business have likely been pushed to the back burner.