Sunday, January 9, 2011

New Pick for 2011

New company I am big on is Barnes & Noble(BKS). They just had one of there best 4 quarter increase in a long time. 4th quarter sales up 9.2% and Online sales up a sick 67%! The Online sales were due to sales of their E-readers the Nook line. Love this story being the Nook will drive sales to them for years to come. My wife got one for me for Christmas and I love it. I will probably buy double the books I usually due all year long. Am sure I am not the only one that will do this. The books are cheaper than Hardcovers and a little more than paperbacks. Great thing for the company is no printing/shipping costs at all. So they are making more per book and able to sell them for less! It will be the way of the future and their sales growth driver. Great thing is when you bring your Nook to the store they target other things for you to buy through specials over their free Wi-Fi connection. Printed books won't disappear but they will make up less and less of their sales. They also increased their floor space of games and puzzles. Both high margin items for them. All this plus a 6.5% dividend to collect! Another thing is the company may get bought out for a premium! Happy Investing. Tony

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