Thread regarding Follett layoffs

The college market is a far better market than the trade book market BN stores/Nook. In addition, by separating the college stores from the BN stores it will reduce the spotlight on acquisition by the justice department. Since rent is the single largest expense in the college store market, reducing competition is focus #1 for BN or Follett. Follett could try to buy BN, but it is likely the family is not up for that risk and will likely sell to BN. For Follett employees the result will be the same. Continued reductions in staff level jobs and store level jobs. Follett will continue to trim costs to drive the price of Follett stock up. And of course they will spin off FSS or keep FSS. This is a pure play FHEG retail/wholesale market.

Hmmm. I don't see the post as a recommendation to buy B&N stock. Rather that this move will give B&N's college division the flexibility to go after "strategic opportunities" with a vengeance--one of which might be the acquisition of FHEG (or maybe all of Follett, and spin off FSS to another company for a modest profit). I have a friend at B&N in Manhattan, and B&N College is their growth vehicle for the foreseeable future. Big box shopping center bookstores have been out of favor for a while now, and the Borders bankruptcy in 2011 gave B&N a shot in the arm for at least a few years after. But the advantage of a public company spinning off a "pure play cash cow" shouldn't be ignored. Sure, I wouldn't buy B&N stock either, but I do think they are far better positioned to exploit campus market share over the next 3-5 years than Follett. Improving financials drive investment in the public sector. Follett is still trying to figure out how to react to the rapidly evolving competitive environment--not just B&N, but Amazon, MBS, NBC, etc. B&N feels these effects too, but they seem faster to react and have better technology to ride the wave. Maybe no merger of us with them is imminent, but job cuts and other "right-sizing" moves are sure to continue at Follett into the next fiscal year and beyond. Lean and mean is how it goes.

Let me see-would I buy stock in B

The industry is dying and with a 15% return to the schools-it's dying faster.

The stock will be traded in a thin market subject to big swings with any negative earnings.

The text book market has far greater completion than ever before.

The market model hasn't changed in a decade even though the industry is experiencing tremendous changes.

Here's a stock where 50% of clients will seek new bids at the end of the contracts.

Substained Double digit growth rates will be virtually impossible.

State legislature can create policy with a negative impact to your business.

There is no secondary profit stream from adjacent businesses.

Need I go on-- I wouldn't even touch this stock your money. This is a move to distance the college market from the rest of B&N.