lucky lenny

Top Option Trades from September 30

Joe,

Of the stocks covered, BestBuy does look the most attractive. BestBuy has upped earnings guidance to $2.70 to $3.00/share. On a personal level, I think places such as BestBuy & the former Circuit City are excellent; compared to Walmart. At BestBuy, they have tons of turnover, so they can always offer the most current models at the same or lower prices than Walmart

What Do the Schizophrenic Markets Want?

Roger,

I don’t think the pro’s on Wall Stret have fully factored in the impact of Circuit City’s bankruptcy on BestBuy. Per Circ City’s 10-k for fiscal yr ended 2/29/08, Circ City did $11.7 bill in sales for the year; had 693 stores in the U.S; 779 non-american stores, mostly in Canada, and the stock, CC - traded in the low 30’s in 2007; & paid a $.16/sh dividend in ’08. Given that BestBuy does about $45.0 bill in sales in yr ended 2/28/09; and competed on most products & delivery channels, I have to believe BestBuy will be able to ease up a bit on advertisng, expansion, remodeling, etc... And at the same time not have to be as aggressive on pricing. Granted, once PC Richard & others take over Circ City’s old stores, the environment will change. That won’t be for a few years. In the meantime, I think BestBuy has some breating room to really increase profits and profit margins. Stock currently under $39/share & projecting earnings of $2.70 to $3.00 in the year ending 2/28/10.


On Sep 23 07:01 AM Roger Knights wrote:

> Circuit City's bankruptcy has given BB a boost.

What Do the Schizophrenic Markets Want?

Michael,

Of the recommended stocks on this post, BestBuy does look the most attractive. BestBuy has upped earnings guidance to $2.70 to $3.00/share. On a personal level, I think places such as BestBuy & the former Circuit City are excellent; compared to Walmart. At BestBuy, they have tons of turnover, so they can always offer the most current models at the same or lower prices than Walmart. On a mixed note, I can never understand why BestBuy has so many sales reps hanging out on the floor. In summary, with the stock price under $39; and former Circuit City’s customers such as myself taking our business to BestBuy, I do think BestBuy looks very attractive. And your take on BestBuy is what?


On Sep 23 06:44 AM Michael Clark wrote:

> I'm taking it you own BestBuy.

What Do the Schizophrenic Markets Want?

Obama’s deficit spending is great for companies such as BestBuy which is consistently making profits. Although $2 trillion of debt in one year is insane. As I don’t want the US$ going the way of the Argentine Peso and Turkish Lira. Having said that, I think companies such as BestBuy, which is profitable and receives spending by consumers, w/ benefit tremendously. All that money flooding into the stock & bond markets; combined with all of BestBuy’s selling advantages, i don’t think BestBuy could ask for a better scenario.

Best Buy: Flat Screens and Flattish Shares Make for Good Profits

Paul, nice write up. I'm surprised Best Buy's stock is languishing under $40. When it comes to electronics, Walmart is terrible & Circuit City is out of business. Best Buy has tremendous customer base. Combined with a decent dividend and relatively low p/e, I'd look for portfolio managers to start adding shares to their positions and help boost stock price. Good luck.