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
- Ebola Suspect Tested In California: Statements From Kaiser Permanente And Dept Of Public Health | ZeroHedge
- If QE Is Ending Because It Was So Successful, Then Here Are A Few Simple Questions | ZeroHedge
- China Push For Gold Pricing Power Continues, Grant 3 New Import Licences | ZeroHedge
- A Pleasant Morning | iBankCoin.com
- Futures Flat With All Headline-Scanning Algo Eyes On Today's FOMC Minutes | ZeroHedge
- To Arms in Dixie | iBankCoin.com
- Liberian Police Open Fire On Ebola Protesters | ZeroHedge
The most relevant financial news and articles from the Internets
- The Field At The 49ers' New $1.3 Billion Stadium Is Already Being Replaced Because It Is... | Business Insider
- Suze Orman, Debit-Card Dealer | BusinessWeek
- Big VCs Are Getting Greedy And Hogging Hot Deals For Themselves, Say Angels | Business Insider
- New Apple Patents Show How iPhones Could Soon Help Us... | Business Insider
- Meet The Baby Boomer Who Moved All Of Her Investments To A Robo-Advisor | Business Insider
- Silicon Valley's Tech Elite Are Spending Millions To Live Like Kings At... | Business Insider
- Facebook Faces European Class Action Seeking Up... | Business Insider