BKS - hysteria fading to reality

Barnes and Noble (BKS) ramped last Thursday, but the daily candle was a classic warning that it wasn't going to last. Despite a brief new high early Monday, the sellers are back, and BKS closed -9.3% @ $21.15, although the low was double that, @ $19.86.


BKS, daily

Summary

By the end of this week, there is little reason why BKS won't be back in the low 19s, or even 18s.

Regardless of the possible deal with Microsoft (MSFT) that might purchase the Nook e-book unit, BKS is still losing money on every book sold.

That is not a viable long term business model.