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alstry (36.32)

Best Buy running dry????

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September 16, 2008 – Comments (1)

Is Wall Street finally waking up to the BS accounting that will wipe out most of America's retirement accounts????

Most of Best Buy's shareholder equity is now Goodwill!!!!! That can be nothing more than hot air.

These guys pissed away billions buying back their own stock at inflated prices last year while insiders dumped shares??? Then spent even more billions investing in Carphones whose numbers are deteriorating??? Cash has almost evaporated compared to levels not too long ago. Long term debt has almost doubled since last year at a time when the credit is tightening????

Why doesn't management report to shareholders how the $5 Billion dollars of shareholder money they spent in the last couple years is performing????  You think management will ever provide an honest assessment of their performance as the hoard huge bonuses and spend shareholders money???

Remember,  banks were telling you they were well capitalized right before they went bankrupt.  Once people start looking at the balance sheets......they will realize how unbalanced their retirement accounts.

BestBuy has little cash now and depends to a large extent on its customers obtaining credit....at a time when the economy is slowing and this management keeps patting itself on the back for spending away $5 Billion dollars of shareholder money.......and they just bought Napster yesterday for cash????

Imagine what happens if sales come in this quarter slower than expected with lots of inventory and little cash???

1 Comments – Post Your Own

#1) On September 16, 2008 at 10:35 AM, abulia (22.96) wrote:

Aquisitions are a great way to hide cash flow issues. Through creative accounting you can turn a string of aquisitions into a profitable year.

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