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
- New Home Sales Miss As Median Price Drops To Lowest In 13 Months | ZeroHedge
- From Hope To Nope - Consumer Confidence Crashes To 14-Month Lows | ZeroHedge
- Unexpected Surge In Auction Demand For 7 Year Treasury | ZeroHedge
- Sarah Ballantyne on The Paleo Approach and the Autoimmune Protocol | Financial Sense
- Hillary Slams "Unfair" Tax Inversions After Sanders Calls Pfizer/Allergan Deal "Disaster For Americans" | ZeroHedge
- Goldman Finally Looks At The Freight Charts, Raises Alarm About The "Broader Health Of The US Economy" | ZeroHedge
- Carsonnochio Strikes Again - "Walks Back" Comments He Saw Muslims Cheering On 9/11 | ZeroHedge
The most relevant financial news and articles from the Internets
- UN weather agency: It's record hot out there this year | Business Insider
- Yellen defends near-zero rates to consumer advocate Nader... | Business Insider
- A professional school where plus-size models take on fashion industry... | Business Insider
- 'Kirchner era' ends with opposition win in Argentina | Business Insider
- Fire kills 18 migrants at Algeria camp: emergency... | Business Insider
- The 10 most important things in the world right now | Business Insider
- Stocks are sliding (DIA, SPX, SPY, QQQ, TLT, IWM) | Business Insider