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Best Buy Co., Inc. Message Board

  • l_winthorpe3rd l_winthorpe3rd Jan 27, 2013 5:57 PM Flag

    Why?

    If the board was at all interested in selling bby; why wouldnt they have sold when their offer was $26. Just a ruse for those with huge holdings to sell while longs pile on in hopes of a premium?

    Can't see why any investor or lender would get behind the purchase of a dying business. All that is needed is news of the deal going south, and bby will spiral into the ground.

    Don't see why any long would want to risk holding onto a stock that could plummet into oblivion, especially where the upside is the rumored buyout price of $16-18 range. Not a premium weighed against the risk imo.

    Sentiment: Strong Sell

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You just don't bloody get it..Winthrope.. Read post under capital markets.Things have changed for BBY and go with the flow. Best Buy is turning around. Investors have gotten burned bad when they fail to change with the changed direction of the company.

      Sentiment: Strong Buy

    • I have answered the financing question before. Shulze needs only minimum financing because:
      1. He already owns 20% of Best Buy. With margin accounts the 20% he owns will enable him to control at least another 20% with a 50% margin.
      This means he needs only another 11% to control the company. (to get to 51%, where he has total control of voting rights, to include electing new board members of his choice)
      The amount of financing he needs is much less than commonly expected. Also, when he has his own money (billions of dollars) in the company, lenders will understand he has a very vested interest in the success of this company. This is much lower risk for a lender to loan money to a guy starting a business where he has not proven he can manage such a business (Schulze has the experience, and the dollars to get it done)
      This is not a highly leveraged deal where the owner expects the lender to take the risks of failure. He takes the risks.
      The premarket passing $16 shows that investors agree with me..the price point has been raised to $21. Buy Best buy while you still can.

      Sentiment: Strong Buy

    • I agree. I have been long to this point but honestly I don't see a deal getting done over $18 to $20. You almost always have a 10% to 15% arb. discount even if deal is announced. Thus $16 could be in play even if announced and if no deal this drops back to $11 or $12 easy. Just to much downside risk for the potential upside, which isn't much right now. Fundamentals are definitely not justifying this price.

    • good pholosophy!

      Sentiment: Hold

 
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