Alstry smells a set up.....
Jefferies & Co.'s Daniel Binder upgraded Best Buy to "Buy" from "Hold" in a note to clients. At the same time, he jacked his rating to "Buy" on several other retailers, including Target, Home Depot, Costco and Kohl's.
Banks are starting to be more willing to lend to consumers and businesses, Binder said, and a macroeconomic recovery may be looming, with retail earnings recovering.
Obviously Mr. Binder doesn't give a damn about Jefferies customers or doesn' t read. He seems to be unaware that banks are about to cut over $3 Trillion from credit card lines of credit. In addition, he must not care that credit card and auto loan delinquiencies are shooting through the roof.
You think banks are going to continue to extend Best Buy's customers no doc loans to keep buying pricey electroninics for much longer in this environment????
And then on the fundemental front.....he forgot that WalMart and Costco are making HUGE inroads into profitable flat panel TV sales and now WalMart is making a strong push into other areas as well.
Alstry may just have to make Best Buy his new favorite red thumb candidate especially after the departing CEO levered this company up to the hilt just before his departure. Does anyone think there is a connection between the two and maybe some of Mr. Binder's clients trying to exit a large position before someone ACTUALLY looks at BestBuy's balance sheet.