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Best Buy Co., Inc. Message Board

  • chessmaster315 chessmaster315 Jan 24, 2013 10:08 PM Flag

    Shorts forgot the golden rule...

    Which is the guy with the gold makes the rules. Schulze can and does control this stock, and buy at will.
    Any billionaire could, but Billionaires are usually smart enough to not fight each other. If Buffet or Gates decided they wanted Best Buy, well no one could stop them. Likewise, in the war Schulze vs Shorts, its a foregone conclusion the guy with the most money wins.
    I doubt any of the shorts have Schulze's resources...he already owns 20% of BBY, and, through margins, can margin it 50% so that already means he can finance 40% by himself...he needs only to get to 51%, and then has control. He may not need even that much..because other shareholders can be convinced that his buyout offer is ok. Even if Schulze did need other financing for the additional 10%, remember, its not all that hard to borrow a dollar when you back it up with $10 worth of stock. In short, the financing is in place. Few people would have trouble lending someone $1.40 using one share of Best buy as collateral, if they agreed on an acceptable interest rate.
    In short, remember the golden rule, and buy Best Buy. Dont try to swim upstream with a short. Shulze has already shown his poker hand..he wants to buy it. Billionaires usually get what they want.

    Sentiment: Strong Buy

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