Last week I talked about the investment from Liberty Media for B&N. Since that time the stock has dropped and dropped. When I took the snapshot below, it was down hovering at $10 per share.
Today’s market has it pulling up towards $11.
This is a struggle of balance right now for the stock, which is interesting to see. But if the stock does rise and level out – probably around the $10-$11 range, it shows the potential that B&N has and that its NEW investors believe so.
I say new investors because the stock price activity shows that some people have had it with B&N and walked away. These were the ones looking for the full takeover and/or buyout of the company. For those holding, waiting for the $17/per share offer to come in, the deal of just an investment may have triggered their sell signals. Don’t forget investors invest not just on the company – investing needs to be done without emotion.
And as people sell and the shares drop, this creates a panic feeling, and it keeps going down. Now some people feel that right now in the $10-$11 range, that B&N is at a good price for buying.
I believe that people are getting in… why not? If they could really get their Nook brand growing and get ahead of the crowd, and find a way to make and keep their brick and mortars profitable, B&N could really be a big player in the book and publishing game.
Again, I’ll go back to what I said before… this is the true power of self publishing and the power of ebooks. If I was holding B&N stock right now, I’d keep it. Then again, if I was a person with shares in the $5 range… I would have sold last week on the news of the investment, and then scooped them back up just under the $10 mark. But that’s me.