Tuesday 9 July 2013

BKS - CEO gets the kick

With the main market rising, Barnes and Noble (BKS) similarly continued its rally, and indeed accelerated on the 'good news' that its CEO Lynch has got the kick, with BKS closing +5.4% @ $18.61. Near term trend looks moderately bullish, next key level is around $20


BKS, daily


Summary

So, the CEO has got the kick (regardless of whether some might argue for the term 'let go', 'moved on' or 'replaced', after having been paid $4 million in 2012.

As many recognise...bad work at the CEO/CFO level still results in good pay/benefits. If that doesn't inspire you with hope for the 'new capitilism', I don't know what will.
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Seriously though, BKS remains a loss making and dreadfully managed company. Every book sold results in a loss to shareholders, and there is ZERO sign that management are going to address the underlying lack of profitability any time soon.

Indeed, their utterly failed foray into E-books was a classic example of a group of people meddling in a separate industry, for which they had zero expertise/understanding.
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BKS remains a failing company, and until they either reduce their costs, and/or increase prices, they are in long term...trouble.