The Barnes & Noble tablet liquidation is on a much different trajectory. Based on Amazon's actions, Barnes & Noble miscalculated the discount needed, it doesn't have as many to liquidate, or Amazon enjoys pouring salt in the wound. Amazon is so competitive it won't let the Nook curl up in the corner and die in peace.
With all that said, shareholders have an unusually bright spot and motivation to maintain their position. The reasoning why a new CEO wasn't named at the time William Lynch resigned is compelling. It's no secret that Leonard Riggio is interested in taking Barnes and Noble private.
One plausible scenario is it will be easier to recruit quality talent after the uncertainty of a buyout is complete. Another is Riggio wants to take the helm again as a private company, and he is positioning himself now for that role after a takeover.Either way, if Riggio and or others take Barnes & Noble private, existing shareholders can expect a significant premium from today's trading range. I think Riggio may wish he picked the keyboard to the head instead, but for shareholders, allowing more time to see how it plays out could result in a big payoff. At the time of publication the author had no position in any of the stocks mentioned. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts