#$%$ had to wait until February 1st to make offer. One would think if it was going to happen he would be loaded and ready to go with it. Each day that passes makes this deal less likely. No deal will no doubt equal a short-term collapse in share price. Todays early action made sense but this move up is crazy.
Schulze will wait till the last minute on 2/28/13 to see what Q-4 earning are like. Then he may make a move on the same day if stock is under $17 to-$18 range. If its over $18, he may have to make a buyout offer not less than atleast $22 and he might decide to skip it. I think BBy stock will get to $20 on its own by the summer ..buyout or no buyout!!
No way it gets to $20 without buyout prospects still going on. If the deal was called off today it would drop at least $3 per share. Fundamentals are not getting better here. Not saying its going to just go away but they have dropped FCF projections to $500M. That is half original projection and 1/3 of past performance. Without buyout this stock will get smashed. Guaranteed.
Agreed seems less likely here but also not trading as if it is expecting an offer so if u get a build to above 1650 before the earnings date and there is no deal a likely 1.50 correction to 15. Market just seems a little bullish to drop below that. Also the underlying business seems to be improving a bit
I heard an analyst on a local radio station opining that the US is getting ready to #$%$ a sales tax on internet commerce (largely targeting Amazon and similar on-line retailers). This may be part of a deficit reduction plan.
Seems like it would make a lot of sense, in one fell swoop it would generate considerable revenue (a portion of which would go to the state where the purchase was made), it would help level the playing field between on line and Brick and mortar retailers and it would help create jobs. The problem would seem to be the implementation.
I think Schulze and PE wanted to see holiday sales AND fiscal year end 2012. Which ended just february 2th.
"Both parties believe that allowing Mr. Schulze to bring his offer after the holiday season and fiscal year end is in the best interests of shareholders," Best Buy and Schulze said in the statement.""
Final negotiations are now ongoing...
"2 feb: Thomas Lee @ByTomLee
BBY buyout still on. Schulze waiting for info on gross margins. Concerns over free $ flow. Co. working vendors pretty hard. Do or die Feb."
I think we will see a offer between 11 and 25 february. Imo offer will be at least USD 20,00.
" Schulze was supposed to submit an offer in mid-December, when the stock traded below $12 a share. But the company wanted to extend the deadline for a bid until Feb. 28 so that Schulze can review holiday and January sales, which include the weeks leading up to the Super Bowl.
"Best Buy has a huge focus on big-screen TVs," said Burt Flickinger, managing director of Strategic Resources consulting firm in New York. With attractive profit margins and the opportunity to sell accessories and installation services, "the big-screen pays for itself."
Best Buy recently said sales at stores open for at least a year were flat in December, a stronger-than-expected holiday performance that has helped boost the company's stock more than 36 percent since the end of 2012 to close Friday at $16.11. With Apple Incorporated's stock losing some of its luster lately, investors are growing more confident in Best Buy's prospects even without a possible Schulze bid, said David Strasser, an analyst with Janney Capital Management.
In any case, the company's price tag just got considerably higher for any prospective buyer.
"It's going to take a lot more money to get a deal done," Strasser said.""