Kobo looks like a hit

Article Excerpt

INDIGO BOOKS & MUSIC INC. $15 (Toronto symbol IDG; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 24.5 million; Market cap: $367.5 million; Price-to-sales ratio: 0.4; Dividend yield; 2.9%; SI Rating: Average) is seeing strong demand for its new Kobo electronic-book reader. That’s largely because the Kobo reader costs much less than its main competitor, Amazon.com’s Kindle. Indigo owns 57.7% of the Kobo joint venture; U.S.-based bookseller Borders Group Inc. (New York symbol BGP) and other private investors own the remaining 42.3%. The joint venture will soon start selling Kobo readers in the U.S., Australia and New Zealand. The partners also plan to launch Kobo in Europe, China and India. Indigo is a buy. buy…