Forum - Banking on Barnes & Noble (NYSE:BKS)

About Barnes and Nobles, I am actually more worried that the company will go bankrupted before it implements its plan. Seeings how their payables are more than their cash equivelant at hand and their net income combined. This company will probably have to eventually leverage themselves to pay for the new ebook strategy as well as their cash flow problems. With negative operating cash flows the past two quarters, this company feels more of a speculative play for me, than a value play. Maybe if that had 500 mil- 1 bil more in cash at hand I would be more comfortable with this company.

I haven't had the time to do a detailed study of BKS' reports, but just from glancing over their financial statement from google finance, the company is at 1 bil market valuation, and they have around 1 bil in net PPE. So hey, thats some decent downside protection, tho I still dont' feel too comfortable in relying on PPE as something to mitigate downside risk, I still prefer cash for that.