How valuable is the Wal-Mart (NYSE: WMT) brand? Well, investors obviously think it’s worth a whole lot for book retailer Books-A-Million (Nasdaq: BAMM).
Shares of Books-A-Million rocketed 84 percent on Thursday, climbing 6-11/32 to 63-7/8 after Wal-Mart announced that it had tapped the company as the exclusive book seller for Wal-Mart’s e-commerce business. Books-A-Million’s trading volume of more than 24 million shares on Thursday was more than 36 times the average volume.
Some of the rise in the stock price is almost certainly froth brought on by day traders, but it’s not inconceivable that Books-A-Million could soon be fulfilling more online book orders than competitors like barnesandnoble.com and Borders. The Wal-Mart brand could end up being extremely valuable, indeed.