Stock to Sell #5: Barnes & Noble (BKS)
Barnes & Noble, Inc. (NYSE: BKS), which operates more than 1,300 bookstores, is under extreme pressure from competitive e-book sales, as well as diminishing profits from its own e-book margins. Credit Suisse says there is a "direct technological attack on its core business."
From a technical perspective, the stock is in a sharp decline and recently broke down from a small head-and-shoulders pattern and a failed stochastic buy signal. Currently trading around $15, the stock’s downside target is $11.