Message Font: Serif | Sans-Serif
No. of Recommendations: 3
What do you folks think B&N's strategy is:
Wait and see if the news drives the pps over $1
Buy as many shares as they can cheaply?
Could they have gotten away with quietly buying up shares without announcing this move?

Since BKS's money is being used, it is only fair and up front (to BKS stock holders) to announce the move. But I think you are right, they could have bought more cheaply without the announcement.

Your question is the answer. They did it probably for both reasons. To make an investment AND to boost the price. At face value, this seems to be a move that will help BNBN in the short term and will help BKS in the long-term. I saw one story were the author thought that BKS was buying the shares so they would maintain controlling interest if BERT converts. That seems a little silly -- if the price is low, BERT would not be tempted to convert IMO. Or maybe Albaby is right, and this a precursor to a buyout. But that seems unlikely to. They probably could have gotten the shares cheaper in the long run by making an offer.

I still think that with CEOs being called into account for their lies, that the face value of this thing is the truth. They think BNBN is undervalued (it is) and they want the investment (they do). Of course the side effect is a better stock price (good for BNBN). Sounds like a good decision on all fronts, IMHO.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.