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Best Buy Co., Inc. Equals The Worst Buy



October 23, 2013 – Comments (2) | RELATED TICKERS: BBY

Best Buy Co., Inc. (NYSE:BBY) is hovering near its 52 week highs. In the last year, the stock has soared almost 300%. Let me ask you a question, if your favorite TV had its price increased by 300%, would you rush out and buy it? The answer is no. We buy things on sale, not jacked up. 

In that same regard, the price of Best Buy's stock is way too pricey to even consider. Especially in light of the recent negative reports on consumer spending and retail sales. On a technical level, this stock is even uglier. Not only is it beyond extended, the stock has filled a major gap from 2010. The key break point on BBY is a close below $41.75. Should that happen, this stock should dive lower to the $36.00 level.

Gareth Soloway

2 Comments – Post Your Own

#1) On October 24, 2013 at 1:41 AM, mistacy (87.48) wrote:

It did go below $36 a couple weeks ago.

I think this rally up to $43 was initially the result of short squeeze.

No one wanted to invest in this company when a buy out offer was @ $24 a share.

Now the stock shares approach twice that amount.

You really have to be an idiot to think this makes sense,

specially considering that sales have not proven to be a success.

Only cost-cutting has helped the company stay afloat so far.

BBY might have bought itself some time,

but competition is fierce.


The next earnings report should be very telling.



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#2) On October 24, 2013 at 8:17 PM, mistacy (87.48) wrote:

A director @ BBY just sold 150,000 shares @ $43.11.

How is that for an insider transaction just before earnings report ... 

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