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timwest
Dec 5, 2013 4:55 PM

Best Buy BBY is AT SUPPLY levels Short

Best Buy Co., Inc.NYSE

Description

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
Comments
QuantitativeExhaustion
Nice Call
timwest
Thanks. The stock is down to $26-$28 this morning.
timwest
This is a decent time to cover BBY short position on this break of support and the drop into the gap. I will not go long but instead will wait for a rally back up to re-short.
Cheers.
11:22AM EST Thursday, Jan 9 2014
timwest
This is tracking almost identical to the forecast. I'm considering what to do at this level.
StealthTrader
Great Work
timwest
Take a look at this BBY chart today
broken87
hey tim have you noticed something weird is going on with YHOO......I am looking at all the financial sites and my TOS platform are all saying the recent highs were not around 44 dollars but around 40.25....can anyone explain this?
timwest
I don't know
broken87
So have you readjusted your stops and targets based on the chart or is it all the same still?
iTaWorks
Unless it breaks the $42.90-43.00 then it can test $44 and break that as well. We'll see what happens!
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