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alstry (36.27)

Does BestBuy need your $$$$

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March 26, 2009 – Comments (5)

Same Store Sales are declining.  Cash is DOWN about $1B y/y.  CURRENT Liabilities are UP about $1.7B y/y.  Important Consumer Electronic Sales are declining both on total sales and as a percentage of sales.

The one BIG bright spot was mobile phones, up almost triple digits, but that likely can be attributed to starting to sell IPhones last year....do you think that kind of growth can continue without a killer product like the IPhones.

Basically we have rising liabilities against slowing same store sales and a much lower cash position.....often you see companies shedding employees to slow the bleed during times like this......but you can only get rid of so many people before your service is affected....my guess is that these guys are going try to raise $$$ to offset this distrubing trend. 

Expect the Wall Street Pump to continue for a period of time......then we will see what happens when the reality of the future sets in.....

The key question now is when and at what price.

5 Comments – Post Your Own

#1) On March 26, 2009 at 11:46 AM, TMFJake (27.86) wrote:

CAPS 2-star stock.  However, 21 of 23 Wall Street firms we track have an Outperform Rating on BBY. 

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#2) On March 26, 2009 at 11:49 AM, alstry (36.27) wrote:

Of course they do...Wall Street is in the selling business.....it is very possible that BestBuy needs to raise cash soon.....you better get dressed up if you are going to the dance.....do you think these guys are firing employees because business is good???

Now..it will be only a matter of time to see what happens.

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#3) On March 26, 2009 at 12:03 PM, nottheSEC (79.60) wrote:

Today's pop is an overreaction providing a shorting opportunity but I do not short here at caps. I dislike the debt mostly amassed in the last 2-3yrs though. Look at key stats. Consumer spending down and cell phone now a need not want because of no home phone.  My humblest opinion...J

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#4) On March 26, 2009 at 2:10 PM, babypoop (< 20) wrote:

I think the market will break DOW 8k and go a little higher.  If it kisses DOW 9k, time to get in short. 

 Right now I'm long and doing pretty good.

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#5) On March 26, 2009 at 2:21 PM, nottheSEC (79.60) wrote:

OH BP I like the general market long. I'm talking Best Buy 

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