Indigo Targets E-Books for New Growth

Article Excerpt

INDIGO BOOKS & MUSIC INC. $12 (Toronto symbol IDG; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 24.5 million; Market cap: $294 million; Price-to-sales ratio: 0.3; SI Rating: Extra Risk) aims to take advantage of the growing popularity of the Apple iPhone and other smart phones, as well as electronic book-reading devices. It will soon launch shortcovers.com, a new web site that will let users download free and paid electronic content from books, newspapers, magazines and blogs. The electronic book market is small compared to Indigo’s traditional book business. But Indigo hopes this new service will become as successful as Amazon- .com’s Kindle e-book reader, which accounts for over 10% of Amazon’s sales. Indigo is a buy. buy…