Best Buy BBY has a 14.45 Billion Mkt Cap. Revenues are FLAT over the past few years:, hovering around 50 Billion.
Earnings are just over $1 billion over 4 years thru 11/2/13, which is a measly 2% return on investment per year had you purchased the entire company 4 years ago for $14B.
There are 349 million shares outstanding and a short position at Jan 31 was 34.7 million shares or 10% of the shares. Now it is down to 15.8 million shares. Even though the stock trades heavily, 19 million shares have been covered at a huge loss and provided at least some of the fuel for the rally.
There is a topping pattern taking place and it may take longer to form but I am willing to take a chance, even ahead of the holiday season. Any short-term weakness though and I will be covering.
$42.27 last, target $38 initially. Stop $45.50 initially.
Cheers.
11:54AM EST, December 5, 2013
Earnings are just over $1 billion over 4 years thru 11/2/13, which is a measly 2% return on investment per year had you purchased the entire company 4 years ago for $14B.
There are 349 million shares outstanding and a short position at Jan 31 was 34.7 million shares or 10% of the shares. Now it is down to 15.8 million shares. Even though the stock trades heavily, 19 million shares have been covered at a huge loss and provided at least some of the fuel for the rally.
There is a topping pattern taking place and it may take longer to form but I am willing to take a chance, even ahead of the holiday season. Any short-term weakness though and I will be covering.
$42.27 last, target $38 initially. Stop $45.50 initially.
Cheers.
11:54AM EST, December 5, 2013
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