Description

BNED has been written up several times and we’d refer you to magundun’s recent writeup and updates. The purpose of this quick and dirty writeup is to illustrate the technical advantage that you will have by buying today and holding through earnings. We like the stock anyway and think it’s a good LT value play and actually serves as a recession hedge as enrollments tend to increase during recessionary periods. We provided a slight summary on the fundamentals, but given the trajectory of the underlying business and technical headwinds recently we find the opportunity assymetric. Apologies if some of this is a rehash but believed it would be instructive to at least touch on the fundamentals as a decent backdrop onto the larger technical advantage one would now have at this time.

Russell Deletion

We believe the selling that was associated with the index deletion is behind us and this name should rerate as it returns more to a fundamental story. Higher volume selling should be behind us.