Monday, April 1, 2013

Why Barnes & Noble Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, book retailer Barnes & Noble (NYSE: BKS  ) has received the dreaded one-star ranking.

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

Barnes & Noble facts

Headquarters (founded)

New York, N.Y. (1986)

Market Cap

$971.9 million

Industry

Specialty stores

Trailing-12-Month Revenue

$6.9 billion

Management

Founder/Chairman Leonard Riggio

President/CEO William Lynch

Return on Equity (average, past 3 years)

(7.2%)

Cash/Debt

$213.6 million/$155.8 million

Competitors

Amazon.com�

Apple

Books-A-Million

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 55% of the 675 members who have rated Barnes & Noble believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, adamlevy, succinctly summed up the Barnes & Noble bear case for our community: "Struggling retail segments in both brick-and-mortar and the Nook division. The only saving grace for this company is licensing content with its publishing partners, which isn't really a core part of its business model (yet)."

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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