Izak Held
Final Project

Barnes & Noble (also known as BN) is an investment that you should stay away from. Last year Barnes & Noble made a bold move, moving it’s Nook out of its locations and into Walmart stores, but still the Nook has failed to meet the necessities it needs to take in order to save Barnes & Nobles. Now, yes the Nook is proven to have better features like it’s longer battery  life and reader friendlier screen, along with other great selling points. Still, Barnes & Noble is still taking hits from Apple’s iPad and Amazon’s Kindle, who are the top competitors, and are drastically dominating the industry. In fact it is likely that Barnes & Noble will take the path of the Borders company and other book stores that had to surrender to the consumer changing market.

The fact that Barnes & Noble is still here, is a major statement itself. Just remember people will always need books, and students will always need what to study from, but the way they are getting it is not the same as it used to be. And the question lay, has Barnes & Noble stepped up their game yet?

Looking at the financial part of it and on the reports from Barnes and Noble’s q10 show cash flow from operations to have gone down. When the operations statement goes down, this is usually an indication of something that took a hit, and that the company is in deep trouble. This is without looking at it’s net loss, in fiscal 2011, and 2012. According to their annual reports, in their closing fiscal year the total sales were dropping until the great recession and the economy meltdown. Afterwards their total sales picked up from 5.8 million in 2010 to 7.1 in 2012, but this was largely due to the Nook series. And we can surely say, is this enough to carry themselves over?

Now they have had a run in the past with their Nook, but again that was not is. With the launch of competitors new products that came out and affected the sales of Barnes and Noble’s Nook, such as the iPad 3, Windows 8, and the iPhone 5, it is clear that the innovation and taste for the Nook is elsewhere.

Perhaps Barnes & Nobles needs to stop following and start leading. Look at the Amazon company that ran on a net loss through most of their years during the late 90’s. It is all about the hype, and like they say, stocks trade ahead of themselves, meaning if the investors see potential and life they will follow. Something we are just not seeing from Barnes & Noble.

In the past year the stock of Barnes & Noble has traded at a low of 12.59, and a high at just 23.71 which is does not entice consumers to invest, and investors to expect more. Not to mention their Market Cap floating at around 800 million, and their margin showing a -9.95% from this past year and a -12.19% within the last two.

It’s return has been pretty good so far this year, as compared to other companies, and it also has a debt to equity ratio better than Amazon, but still not enough to get them back to the peak. As it gets colder and the holiday season is here the demand for getting cozy with a book in the magnificent Barnes & Noble local stores should indicate that this time of year is its most successful, but it is what the investors are looking for? A case where a company is just holding on from it’s Christmas, and Hanukkah sales alone.
Companies online are striving and growing in the numbers day by day, and don’t have to worry about upkeep on hot spot locations. It goes without say that one of the biggest assets to the company, as expressed in the real estate world: location, location, location. Barnes & Noble has one of the prime hot spots of most areas that attracts and will always bring in its clientele, which is an essential reason of the business they do. If this continues to happen perhaps Barnes & Noble trade in for cheaper locations?

Barnes & Noble college bookstore partnerships, the division of Barnes & Noble that works with college campuses to get books to students, a business that brings in billions of their revenues will also be an unsustainable revenue as the shift to the online market buying is here. Barnes & Noble expressed in their annual report great aspects for the cornerstone of their industry, including a 1.1% increase in sales and opening of new locations to further their success, but is this where they should be innovating and putting their time into.

Today we need to buy a lot to educated and entertain ourselves. Barnes & Nobles was a place to educate and entertain ourselves, but will it be a thing of the past? As shows, it may be a safer investment to stay away from the bookstore, and invest elsewhere.

https://soundcloud.com/izakonline/jrn-big-biz-final-barnes-noble

Kaufman, Leslie. “Barnes & Noble Weighs Its E-Reader Investment.” New York Times [NYC] 24 2 2013, n. pag. Web. 17 Dec. 2013. <http://nyti.ms/XQIU67>.

Moskowitz, Dan. “Buying Barnes & Noble’s Stock Here Be a Good Read?.” (2012): n. page. Print. <http://wallstcheatsheet.com/stocks/would-buying-barnes-nobles-stock-here-be-a-good-read.html/>.

“Barnes & Noble, Inc. (BKS) Yahoo Finance.” (Dec 1, 2011-Dec 1, 2013): n. page. Print. <http://finance.yahoo.com/echarts?s=BKS+Interactive#symbol=bks;range=2y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;>.

“BN Form 10-Q Quarterly Report.” (2013): n. page. Print. <http://forinvestors.barnesandnobleinc.com/secfiling.cfm?filingID=1193125-13-358093>

Barnes & Nobles, . “Barnes & Noble 2013 ANNUAL REPORT.” (2013): n. page. Web. 13 Nov. 2013. <http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdf>.

Barnes & Nobles, . “Barnes & Noble 2012 ANNUAL REPORT.” (2012): n. page. Web. 13 Nov. 2013. <http://www.barnesandnobleinc.com/for_investors/annual_reports/2012_bn_annual_report.pdf>.

Amazon, “Amazon 1999 ANNUAL REPORT.” (1999): n. page. Web. 13 Nov 2013 <http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdf>.

Barnes & Nobles, Inc. “ANNUAL REPORT TABLES” <http://www.barnesandnobleinc.com/for_investors/annual_reports/annual_reports.html>.

Izak Held
Coffee & Cheese Is All It Takes.

When one walks down the scenic block of Central Avenue of Cedarhurst in Long Island, they may be looking for a coffee shop and may ask a recommendation from someone walking by. After asking a local, her recommendation may just be a surprise when she says, “check out the cheese store.” You see Central Avenue, also known as “The Avenue” is a magnificent 1 mile strip in the Heart of the 5 towns area that is home to dozens of small businesses and a great tourist area.

With a wide selection of coffee and cheese, The Cheese Store of Cedarhurst is quality that is hard to find in today’s highly recognized brand named food places, such as Starbucks and Dunkin Donuts. The store sells a variety of coffee, cheese and crackers, but you may notice that what you are getting is more than your average cup of joe, it’s the experience. Great quality coffee with a cheese that is just cut right, and the familiar faces of a dedicated long serving staff is a big win for the cheese store, one of the employees said “I love working here and It says a lot when you know almost 90% of your customers names”. It is a common thing to understand, that people want something different, like a coffee shop named the cheese store, that sells a peanut butter flavored iced drink.

The store’s clientele is mostly women, according to the staff, most of them ordered the detailed coffee flavors that the store does a great advertising of and would naturally attract customers with. Being in a great location such as central avenue that hosts dozens of food stores and restaurants, and attracts plenty of close by New York state tourists, can be quite the edge. A dozen flavors of cheese cake may be a little too much, but ranging from chocolate to lime doesn’t hurt. The coffee can also be a little to detailed with flavor after flavor posted on the front menu.

As customers walk into the store, they are quickly greeted by the staff, and most of the time by the proprietor of the store, Mr. Mitch Rakita. Rakita has been the owner and operator of the establishment for over 35 years, a family business that is beyond the immediate family. For many of the workers have been at the store for decades. The stores look is quite original, with photos of their past and many of their customers and workers postered all over the walls.

“The key is to keep up with what’s popular, and a mix of what I find attractive” said Rakita. “Being that I operate the store and am here throughout the day, one of the benefits is the quick additions of new products. If something is hot and the customers want it, it is on the shelf the next day,” explained Rakita, which is one of the major advantages of a sole proprietorship, and being on the floor of the action. “We can change direction in a minute…If it’s a hot item I’ll go out and buy it,” he continued. This is a major benefit as well, but also shows a lot in a store like this for some stores may say that they will never change anything, or what they believe is the catch of the business they want to remain the same, you see reputations like these are known in this area. But Rakita and his staff know it’s more than that, it’s the customers. “I come here almost everyday and it feels like home” said Chava M., a daily customer of the store.

Rakita and his staff’s schedule is like a roller coaster as any store that has a specific target market. The morning starts off the day and is the business’s busiest time, not hard to believe considering coffee is best in the morning in this store because of the freshness of the beans and ingredients. But as the day goes along the business picks up again by lunch time, clear to see that customers like the product mostly any part of the day.

When asked what the busiest season was, the answer lead to a complete new story. Years ago, according to Rakita, the busiest time of year was Christmas and the holiday season. But over the years, the demographics changed dramatically from a Christian neighborhood to an Orthodox Jewish one. Being kosher, lead to no pork and a different customer base emerging that the store had to overcome. But as Rakita put it “Things change, and as an owner you have to be able to recognize it and change it.” The store that started with a mix of meats and cheeses, soon found its menu to be strictly dairy with their new Coffee and Cheese mix catching the attention of the crowd. And more importantly seeing it paying off.

But the most challenging thing that this store  finds, is it’s staffing. “The staff is an extension of you, a customers problem with a staffer, is evidently your problem,” said Rakita. And watching the staff and their behavior through different methods and technological ways, is something that was never thought about 35 years ago when the store opened. “I would have never imagined that we would need cameras in a store,” something that business owners may have overlooked years ago, but now is an expense that is naturally on the top of the menu so to say.

https://docs.google.com/presentation/d/1CBIF4LlCdk4zHTo3kAlaP4b-nlTLvsyMHHj6eYloVHw/pub?start=false&loop=false&delayms=3000

Books Will Always Be Needed

Barnes and Nobles (also known as BN) is traded on the New York Stock Exchange under BKS, and it is an investment that you should take. Last year Barnes and Nobles made a bold move, moving it’s nook out of its walls and into Walmart stores. But a bigger statement was made when barnes and nobles nook replaced amazons kindle. A surprise? It shouldn’t be considering that the nook is proven to have better features like it’s longer battery life and reader friendlier screen, as well as a continuous list of quality. Of course Barnes and Nobles is still taking hits from Google and Apple, who are hands down in the top 2 spots (for now atleast), but Barnes and Nobles will not take the path of the Borders company and other book stores that gave up and eventually retreated to defeat. The fact that Barnes and Nobles is still here, is a major statement itself, just remember people will always need books, and students will always need what to study from.

Reports from Barnes and Noble’s q10 show cash flow from operations to have gone down, but a 16% increase in earnings before interest, taxes and other fees. When the operations statement goes down, this is usually an indication of something that took a hit. However last year was a boom from their launch of the nook. With the launch of competitors new products that came out and affected the sales of Barnes and Noble’s nook, such as the iPad 3, Windows 8, and the iPhone 5, it is clear that the innovation and taste for the nook is still here, but with the economy the way it is people are still limited to the #1 and #2 tech product spots.

As for BN’s stock, we need to understand that Barnes and Nobles is a physical attribute, why? Look at the Amazon company that does not have revenue and has run on deficits at times, it is all about the hype and like they say, stocks trade ahead of themselves. In the past year the stock has traded at 12.59 – 23.71 which is more than modest and conservative. Also noteworthy is the high 70 million copies sold of “fifty shades of grey”, and other records that the store is producing.

Let’s look at some advantages that Barnes and Nobles has currently. It’s return has been pretty good so far this year, as compared to other companies, and it also has a debt to equity ratio better than Amazon (a top competitor). The time to invest is now, as it gets colder and the season is here the demand for getting cozy with a book in the magnificent Barnes and Nobles local stores is how it begins.

But getting back to its core, the nook, it does have a following. And the following is growing and this is key to establishing the book stores brand, which it has been doing.

And we need to realize one of the biggest assets to the company, as expressed in the real estate world: location, location, location. Barnes and Nobles has one of the prime hot spots of most areas that attracts and will always bring in its clientele. Companies online come and go and do not supply the physical coziness. This is a big beneficiary of Barnes and Nobles college bookstore partnerships, the division of Barnes and Nobles that works with college campuses to get books to students, a business that brings in billions of their revenues. Barnes and Nobles expressed in their annual report great aspects for the cornerstone of their industry, including a 1.1% increase in sales and opening of new locations to further their success.

There it is ladies and gentlemen, the overview of why barnes and nobles is a go to place for investments and a place where your future wants to be.

Moskowitz, Dan. “Buying Barnes & Noble’s Stock Here Be a Good Read?.” (2012): n. page. Print. <http://wallstcheatsheet.com/stocks/would-buying-barnes-nobles-stock-here-be-a-good-read.html/>.

“BN Form 10-Q Quarterly Report.” (2013): n. page. Print. <http://forinvestors.barnesandnobleinc.com/secfiling.cfm?filingID=1193125-13-358093>
Barnes Nobles, . “Barnes & Noble 2013 ANNUAL REPORT.” (2013): n. page. Web. 13 Nov. 2013. <http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdf>.

October 30, 2013

JRN3200 – Prof. Michael.Bobelian

Izak Held

GDP Increases. The Economy Is Happy.

GDP Rises 2.5 percent in the second quarter which was more than expected. The unexpected number is believed to be because of increases in exporting materials. Growing our market in the non-domestic ones is something we are happy to see.

We need GDP to continue it’s growth in order for us to be confident in the U.S. economy. If our Gross Domestic Product increases it means we are bringing more clients into the economy, expanding the market and surely there is more of a demand for employees. “The key to this comeback is the job growth”, said Dr. Roberta Schroder, Professor of Economics at  S.U.N.Y. Nassau Community College. With more GDP growth the jobs will be there and help our economy keep growing.

It is excellent to see the number higher than estimated, but isn’t it time that we start getting the actual numbers right? The importance of the number and estimates are crucial and it plays a key part in many businesses and sectors. We hope to see the markets take off now that the reports show complementary results.

Real gross domestic purchases increased as well given that this is a time slower than the ending months of the year from holiday purchases.

The estimate was at 1.7 percent and the actual figures came out to be .8 greater than that for 2013. In comparison to the year before, 2012, showed 1.3 growth in the second quarter. It is a good place to be in from that comparison to the year before.

The Dividends report showed an increase of $273.5 billion in the second quarter, in contrast to a decrease in the prior one. Showing us that companies are getting those dollars they need to pay out to shareholders.

Other increases include non residential fixed investments and Nonresidential structures that both increased from a decrease in the previous quarter. And Equipment, and Real residential fixed investment increased again in this quarter from the previous one. The only thing that we may want to be concerned especially about is Intellectual property products had a decreased of 1.5 percent, while it increased in the previous quarter.

Bureau Of Economic Analysis , “Gross Domestic Product” 2013 2cnd Quarter

Web. 30 Oct 2013 / <http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm>.