This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

3 Short-Squeeze Opportunities for 2011

Barnes & Noble

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Bookseller Barnes & Noble (BKS - Get Report) has had a rough time of it during the recession, and even now, taking a 25% haircut to its share price in 2010. That decline has, in turn, spurred short-sellers to take positions against the stock amid mounting financial challenges for the company.

Today, Barnes & Noble sports a short interest radio of 19.2, suggesting that it would take nearly a month for short-sellers to exit their positions at current volume levels.

Barnes & Noble is the biggest brick-and-mortar bookstore chain in the world, with physical locations, a growing college book business, an online sales presence and even a publishing arm. But that diversification hasn't spared the firm from languishing sales and growing debt from its latest acquisition spree. The online store could be the key to regaining some of the market share lost to digital rival (AMZN) in recent years -- and so could the Nook, the company's popular e-reader, which is tied to its online store.

Speculation has been mounting this month that BKS's largest shareholder, Bill Ackman's Pershing Square Capital Management, was trying to facilitate a Barnes & Noble buyout by a competitor for $16 per share. While those rumors are only that at the moment, the surge in interest for Barnes & Noble could mean that a price recovery is sooner to come than anticipated.

In the meantime, income investors should continue to be drawn in by the company's hefty 7% yield, which is somewhat secured by the company's ample cash generation abilities.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ALR $45.94 1.00%
BKS $25.61 2.90%
SHLD $38.06 1.20%
AAPL $129.34 0.69%
FB $79.68 0.90%


DOW 18,244.41 +111.71 0.62%
S&P 500 2,112.80 +8.30 0.39%
NASDAQ 4,997.0340 +33.5070 0.68%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs