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Best Buy Co., Inc. Message Board

  • kepinitfun kepinitfun Jan 17, 2013 3:33 PM Flag

    It's going to drop quickly

    I personally like Best Buy but these financials just can't support the value. I've read some of these posts and I have no idea how people think this is a $15 or $20 stock. Margins are terrible, cash flow is worse and debt is enormous.

    Sentiment: Strong Sell

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    • If you care so much about margins or cash flows, you should look at Amazon.

    • I bought at 19 and have taken a beating. I would like to see follow through on this week's price move but it looks like a technical disaster at this point. If we do not break 15 tomorrow, I am out with a sizable loss. That is better than staying the course to single digit PPS. The market is heating up and there are much better stocks to invest in right now.

      • 2 Replies to system_analyst_af
      • You are aware that IF an offer is finally made by Schulze, it will be in February - right? Two to six weeks. Not telling you what to do, getting out now might be the last chance longs will have at these prices, but of all the times to give up... this may not be the best. I have a fully hedged position at $13 just in case the bottom drops out. The stock has been far more solid since last Thursday/Friday than I thought it would be. One would have expected at least ONE solid down day since then. Time will tell. Good luck.

      • I'm on the board of a regional electronics operator with no debt, much better financial position in BBY and we took a beating. We revised our estimates and I can tell you our Q4 is way down. People on this site get personal, but I really don't see any upside here. There is no way a private equity firm will buy this out with declining revenues since they won't get the debt proceeds they need. I do LBO's and these financials don't support pulling any money out of the company. It would require too much cash to pull off.

        Sentiment: Strong Sell

    • I agree completely. Adding more debt, probably at a higher rate through a buyout will not help Best Buy either. Praying there is a buyout is no excuse for not doing homework and looking at the financials. If a buyout comes, me and most of the analysts covering BBY will really be surprised.

      Sentiment: Strong Sell

32.03+0.080(+0.25%)May 27 4:00 PMEDT