He was brought in as a savior. He clearly saw the handwriting on the wall. I find it humorous how the longs thought this was a good sign.
Buyout talk is a con.
Any potential financial backers will surely ask that question. Wouldn't you?
So why would anyone lend him money now? Would you?
Makes no sense.
They resigned because the know what's coming. Bankruptcy and lawsuits.
There never has been a written offer. Nor will there be. Schulze may as well have floated $50 per share - it was manipulation all along - but the market knows better. BBY will be bankrupt in 2013. BTW, where it that uncle.bubs cheerleader?
People who say "BBY just needs to close down some stores" don't realize that it is not quite that easy. It will be easy to do when BBY goes bankrupt though.
He was brought in as a savior. He clearly sees the handwriting on the wall. I find it humorous how the longs think this is a good sign.
'Its like saying "news media doesn't believe in LBO" '...............yeah bond markets are stupid (sarcasm).....take off the rose-colored glasses
The $BBY 5.5 '21 bonds have a 101 change of control price. The bonds have traded down 11 points this month from 92 to 81.
Translation: Credit market doesn't believe in $BBY LBO
Fitch: "BB: Non-investment grade
speculative, indicates an elevated vulnerability to default risk"
Shhh don't tell longs here because they think that lenders/private equity groups are stupid. By the way 'BB-' is worse than 'BB'
$100 says you're an Obama voter (with that 'tolerant' liberal attitude of yours)
Even if prices are close, BBY still loses because they have much higher overhead. Here are some examples: AMZN and BBY each have $50B in total revenue (obviously AMZN's is not all electronics), but AMZN has 69,000 employees, BBY has 167,000 employees. BBY also has much higher lease costs, with the average lease being 8 years. AMZN only charges taxes in 8 states - the 9th won't come onstream until mid 2013. AMZN has $5B in cash, BBY has $309M. Then there's COST, WMT, TGT, etc. No potential buyer wants to inherit those problems; it's all smoke and mirrors. BBY is finished.
November 19, 2012 4:00 PM EST
UBS cut its price target on Neutral-rated Best Buy (NYSE: BBY) from $16.75 to $14.50 ahead of Q3 results due tomorrow.
"A lot of the mystery has been taken out of BBY's 3Q given its preannouncement and recent investor meeting," the analyst notes. "The focus will be on how the company is positioned for the holidays and recent trends. We are forecasting a -2% domestic comp and -85 bps of domestic GM erosion in 4Q, but a wide range of outcomes is possible, especially with BBY's new price match policy in place."
UBS said a detailed analysis of BBY’s Black Friday shows that across Computers, HDTVs, Cameras and Appliances company reduced the number of featured products from 143 items last year to 61 items this year. However, the discounts are greater this year, they said. "Interestingly, only 3 HDTVs are discounted vs. 29 last year," the analyst said.
UBS notes that shares have been under pressure recently as questions grow larger about whether Schulze can attract enough investors to finance his bid. "His due diligence likely began in mid-September meaning the standstill agreement expires about now. The likely next step would be Schulze asking for a 30-day extension for the bid. The volatility is likely to persist, but it appears the shares are approaching a near-term floor."
The firm expects choppy valuation until LBO talk/holiday spend become clearer.
For an analyst ratings summary and ratings history on Best Buy click here. For more ratings news on Best Buy click here.
Shares of Best Buy closed at $13.75 yesterday, with a 52 week range of $13.52-$28.53.
Then thank me later.