Bottom for Best Buy?
Best Buy (BBY) has lost more than 1/3 of its market cap over the past two trading sessions. Justified or overdone?
Depends on how you view it. More importantly were you in the stock before the earnings call? If you were you are probably never investing in BBY again, I don't blame you.
The general consensus is Best Buy is in for more pain. Thus the stock could keep dropping. I for one am willing to take a chance on the massive pullback.
Cramer said wait for the second day drop. That was Friday (Jan 17th) and it shed another 9%. Now what?
Folks Best Buy is not dead. For those who didn't gamble on the earnings call, this is a vulture play. Buy the stock now that it has been hammered. Put in tight stop/loss limits for yourself. If the stock is a falling knife then wait for an absolute bottom. I think BBY is going to bounce 2% when the market opens back tomorrow (Jan 21st).
Besides missing earnings BBY expects operating margin excluding items to be 175 to 185 basis points lower in the fourth-quarter than compared to one year earlier. Best Buy did report that domestic online revenue totaled $1.32 billion, while comparable online sales rose 23.5%.
If you are a bottom feeder like myself then this presents an opportunity for traders. I took a small position today and will wait for next week's action to determine if I will buy more. Some analysts cut their target prices on Best Buy to around mid $30's. I'm game for that and believe in 12 months BBY will be up $10 from today's $24 price.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Chinese Stocks Extend Yesterday's Plunge Despite Regulators "Asking" Insurers To Stop "Net Sales" | ZeroHedge
- Threat Of Cyber War – “Other Reason To Own Physical Gold” – Rickards | ZeroHedge
- 70% Of Americans See Economy Worsening, Consumer Comfort Collapses By Most In 10 Month | ZeroHedge
- Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender | ZeroHedge
- Lagarde Says No To IMF Aid For Greece | ZeroHedge
- US Housing Market Heating Up | Financial Sense
- This Is The Reason Why Facebook Is Sliding After Hours, Dragging Nasdaq Futures Lower | ZeroHedge
The most relevant financial news and articles from the Internets
- Google has a brilliant new tool for avoiding long lines at stores and restaurants... | Business Insider
- 10 breathtaking views of mountains from Business Insider readers | Business Insider
- Angry Birds 2 is finally here | Business Insider
- Why live TV will be mostly irrelevant in the future | Business Insider
- Vladimir Putin is suffocating his own nation | Business Insider
- Facebook just added more daily active users in the US than Twitter added monthly active... | Business Insider
- Big game hunting may actually protect endangered species | Business Insider