Seeking Alpha

An interesting question on the looming Best Buy (BBY) deal is posed by Jeff Macke who wants to...

An interesting question on the looming Best Buy (BBY) deal is posed by Jeff Macke who wants to know why Richard Schulze wouldn't play a bit of a waiting game with the rumored value of the deal already falling by 35% in less than two months. Despite the deadline imposed by the board, waiting for another a quarter of earnings results and potential soft cash flow forecast could yield an even lower buy price.
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Comments (5)
  • Akram's Razor
    , contributor
    Comments (992) | Send Message
     
    Easy answer....because he already owns 20% of bby and is tired of watching his wealth getting marked lower with every passing day.
    13 Dec 2012, 09:04 AM Reply Like
  • alx.botelho
    , contributor
    Comments (64) | Send Message
     
    or maybe this Q wont be that bad and/or other possible bidders may jump on board
    13 Dec 2012, 09:11 AM Reply Like
  • lanettedonovan1
    , contributor
    Comments (31) | Send Message
     
    If he waits and CF this Qtr is even worse than forecast ( and it could be) then he could lose PE investors. I do not understand why any PE firm would want to invest in this declining business anyway. Company already has 2.2 billion in debt.
    13 Dec 2012, 09:09 AM Reply Like
  • alx.botelho
    , contributor
    Comments (64) | Send Message
     
    they have access to real time data......

     

    at $12 BBY is already trading at book value. with $ 40 Bln plus annual sales, if they can increase margins a little bit the company would be really, really cheap at $18.
    13 Dec 2012, 09:19 AM Reply Like
  • bsharks26
    , contributor
    Comments (195) | Send Message
     
    And also, they have a great opportunity w Target regarding the Geek Squad
    13 Dec 2012, 11:59 PM Reply Like
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