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
- Michelle Obama Takes A Shot At "Make America Great Again" | ZeroHedge
- Twitter Plummets After Slashing Q3 Outlook | ZeroHedge
- Frontrunning: July 28 | ZeroHedge
- Reagan Shooter John Hinckley Jr Released, Will Live With His Mother | ZeroHedge
- The U.S. Presidential Election is a Mess - Thank Goodness! | ZeroHedge
- For Those Who Slept Through The "Yen Rollercoaster", This Is What You Missed | ZeroHedge
- These Are The Best And Worst U.S. Cities To Own A House | ZeroHedge
The most relevant financial news and articles from the Internets
- The bizarre and Freudian history behind McDonald’s golden arches | Business Insider
- People are spending more money than expected on dating... | Business Insider
- THE BEACONS REPORT: Why the CPG category is poised to become... | Business Insider
- THE CONNECTED CAR REPORT: Forecasts, competing technologies... | Business Insider
- UK peer-to-peer lending volume is down for the first time | Business Insider
- Behold the most expensive weapons system ever and all of its ammunition in one... | Business Insider
- The real reason Tim Cook loves Pokémon Go is because it proves Apple has been right all along (AAPL) | Business Insider