Inside story of Barnes & Noble

The stock market keeps on fluctuating every time. In a split second, the price of the shares will go up while in few minutes the price will come down. The story continues every day and one cannot control the change in price of shares. One thing that can be done is observing the change in the market and waiting for the right moment to step in or step out. The investor must make sure that he or she is keeping the record of all the big changes occurring in the market. This will help them in their investment. The market results are not always convincing and a little mistake could be fatal for the future of any company.

This time the price of the shares of bookseller Barnes & Noble (BKS as listed by New York Stock Exchange) had fallen down by 15 per cent in a single day. The price had fallen because the company announced its fiscal results of the third quarter. While people were expecting that the bookseller company B&N would rise but with their poor results in the quarter, the price of the shares came down. The earnings per share could not be met as per the target, it felt short of the $1.13 which the Wall Street was expecting. Another disappointment was that the revenue earned was a little less than the expected $2.3 billion, but the major disappointment was something else.

The B&N Company announced that it is suspending the dividends. The step taken by the company has disappointed many investors who were looking for some returns. After the profit, every investor expects something in return. But the company disappointed many hearts. This might be fatal for the company in the coming future. Every investor needs certain guidance from the company where he or she has invested, but B&N was not guiding any one. A major turn happened in which the company decided to hold off issuing the guidance because the Borders got bankrupt.

The odds are not in favor of the company, but people are still expecting the company to perform well in the near future. It is just like that the Ice-T is running through the woods in an attempt to survive in the classic B-film “Surviving the Game”. The B&N Company has another venture where they can get profit from. Though the venture is still unprofitable but it is growing quickly. The venture is the Nook e-book reader. It is a website where the company is offering different kinds of books. Though this looks simple, but the company has a long way to go. Its competitor Amazon.com dominates the market and it will be difficult for the company to overcome it.