Rocketrade

Best Buy Crushes Estimates, Silences Consumer Worries

BRCL CEO speaks and Best BUY should take note:

www.wallst.net/audio/a......

Notes
Specifically mentions Best Buy as a company that needs to follow SBs business model to compete with the Costcos of the world.

Expects 150% growth over next two quarters

Will finance growth by raising working capital (referenced benefits of product and reliability) thru high demand. Was originally financed thru receivable borrowing and now are looking for a debt offering from a bank. Mentioned that there were a few that had shown interest already.

$200 Million revenue drop going forward was taken from China

Expects to move from 1 1/2 to 2% market share up to 5% in the next 2 years...~250% growth. Will achieve by borrowing against China and debt offerings.

Mentioned street reacted to SBs trouble with handling the growth effectively. Shoring up of internal and forecasting controls should be in place with recent hirings.

Much of this is rehash of CC but the key take-away I find is that he is forecasting in this soundbit that they expect a 250% growth rate for teh next two years so that leaves two options to hit that. Either grow at the 100-150% they have recently forecasted for a couple of quarters and then 300% for subsequent quarters or grow at 250% for every quarter going forward and smach the Wall Street guidance from the CC.

Knowing that he has a distaste for the shorting that has occured with regards to this stock I suspect it is the latter. At the very least (again, if he hits the targets mentioned here) there will be astounding growth no more than 2 quarters out.

If I were short this would make me a bit nervous. What happens when he drops the hammer saying that financing thru (insert bank of choice) has been received to finance growth?

Longs-be prepared to ride a rollercoaster for at least a qtr or get out
Shorts-keep an eye on it or get out.

I am long on BBY and BRLC!!