If you read March 10th’s Why I Still Like Barnes & Noble post, and acted on it (as I did) you would be feeling pretty good this week. With Liberty Media’s announcement on a purchase offer and the subsequent by Ron Burkle and Yucaipia’s overtures to raise the value of the company, the stock rose from the $11.90 price back in March to $19.24 this morning. That 62% return in 75 days (300% at an annualized rate) is a validation that the battered bookseller has more life in it than some Wall Street analysts droned into the stock value after the holidays.
While I would never tell my readers that they can count on my advice to reap those kinds of returns regularly, it does reinforce advice any smart investor should follow: do your own research and don’t always listen to the “experts” on Wall Street. For readers of this blog, insight into the strategies and tactics that separate successful retailers from unsuccessful ones should help provide guidance from an industry expert on which stocks are likely to appreciate (or falter) long before the analysts on Wall Street pick up on the scent.
Meanwhile, I am looking for the next retail stock …..