Wednesday, January 22, 2014

Best Buy's Dip Is A Great Opportunity

It was with a heavy heart that I sold my shares of Best Buy in October. Though I had great confidence in new management's ability to continue to improve operations, the company's share price was near fair value in my estimation, and I don't like to own companies without a margin of safety. Since that article in October, however, Best Buy's (BBY) shares are down 43%, offering up another opportunity to own this company at a discount to its intrinsic value.Read more...

1 comment:

GlennC said...

I'm skeptical because it seems like Ron Johnson logic. Management is basically saying that things are bad now but they'll get better in the future. (To be fair, Best Buy's same store sales are fine while JC Penney's tanked hard.)

To me, you want a management team that delivers results... not a management team that only says that they will deliver results.

2- For the CEO to say that he is going to cut costs is kind of bogus. It should come as naturally as breathing.