Barnes & Noble Could Soar

Barnes & Noble could make for exciting reading this summer, as the retailer moves toward separating its college bookstore business from the rest of its operations in August.

The spinoff of Barnes & Noble Education will showcase an attractive business with good growth prospects that is buried inside the bookseller, whose results have been depressed by a disastrous foray into the tablet area with Nook. The split will also let investors get a clearer look at the company's underappreciated retail bookselling division, which generates significant free cash flow.