Idle Chatter -- September 10, 2015

This is not an investment site. Do not make any investment or financial decisions based on what you read here or think you may have read here.

I heard on the radio earlier this week that shares in Barnes and Noble slumped 14% (they may have recovered, I don't know) but they did slump significantly. The 30-second sound bite suggested the company blamed poor performance on continuing losses in the ebook (Nook) sector. That's very, very likely. Who am I to disagree? But, I think BKS has a much bigger problem than the Nook. There are comparisons, I think with Best Buy, another shopping window for Amazon.

Years ago, I thought Best Buy would not survive, but it appears to be the last tech store standing. Circuit City and all the rest have closed. Best Buy is now Best Window where folks can window shop for electronic gadgets, get good (?) advice from employees, and then go home and order off Amazon. It appears that a closer relationship Apple may have saved Best Buy's bacon.

Barnes and Noble does not have any way to tie in with Apple, unless, I suppose they ditch the Nook and set up Apple iPad kiosks in the stores, but that will never happen.

I've said it a million times and I will say it again: if Barnes and Noble wants to survive, they need to change their business model. I've opined on my thoughts on a better business model but won't bring it up again in this note.

Meanwhile, when it comes to Apple shares, Joe Kernen (CNBC) proves once again how most investors are emotion-driven rather than fact-driven. I don't get get television at home; I only see TV when I'm traveling. This morning was the first time in six months, I suppose, that I caught about 15 minutes of CNBC. I was surprised by how emotional Kernen gets when it comes to Apple. He must have missed that boat twenty years ago and never moved on.

Based on a single conversation in Williston this morning, folks may want to follow the story at this link.

Netflix shares have been volatile the past few days; there are headlines that Netflix sagged after Apple announced new Apple Television. I don't think Netflix has a thing to worry about Apple Televison ... yet. The market "looks" ahead six months, but I doubt Apple Television will have much new market penetration even a year from now. Even then, in the out years, I think Netflix and Apple have two different business models; there is more than enough room for both if done right.

Idle chatter.  I don't trade. I invest. I don't own shares in any of the companies discussed above except for one of them ... and such a small amount even if share prices doubled overnight, would make little difference to me. I just write about these companies because I find the companies and/or their business models interesting.