BBY Message Board

 

Sandip Sharma
08/01/12.12:53.AM

News  .;.;

43

 

Sandip Sharma
07/30/12.2:05.AM

News love

32

 

Sandip Sharma
07/30/12.2:04.AM

News hello

34

 

Sandip Sharma
07/30/12.1:35.AM

Analysis ,u,,uik,u

22

 

Sandip Sharma
07/30/12.1:34.AM

Analysis tynytnynyumuim ui 

19

 

Sandip Sharma
07/27/12.7:52.AM

Analysis The all-new BMW 3 Series sedan has be...

34

 

Perry Rod
01/05/09.11:42.AM

Analyst Coverage apparently this guy thinks it's a buy...

99

 

Mahyar Hashemi
01/02/09.4:39.PM

Analysis I've been following retailer Best Buy...

379

 

Peter York
11/12/08.10:14.AM

Management Best Buy's CEO Brad Anderson single h...

240

Best Buy, Inc. Analyst Oversight

 

Michael Pachter
BBI NFLX ATVI TTWO

Moderated By
Perry Rod

 

Matthew Fassler
BBY

Moderated By
Perry Rod

 

Gary Balter
SHLD GME BBY

Moderated By
Perry Rod

Best Buy, Inc. Executive Oversight

 

Brad Anderson
BBY

Moderated By
Peter York

Best Buy, Inc. Featured Analysis

 

A 2009 Look At Best Buy - Is It Even a "Buy" ?

by Mahyar Hashemi, Published: January 2nd, 2009 5:11 PM CST

I've been following retailer Best Buy (BBY) for several years.  I always liked the logo, the store and their clean aggressive business model.

But I'm surprised that the stock has even held up as well as it has given the market declines.  A year ago, earnings expectations were more than $4 and now the current year's guidance is at $2.60 with the next fiscal year being a question mark.  Best Buy is talking about significant cost reductions next year and their balance sheet has deteriorated, despite promising a slightly higher dividend of .14

Cash and investments are at about 600M while long term debt and liabilities are at 2.1 billion.  Short term debt is another 2.1 billion.  A year ago, those numbers were very different.  To make the long story short, their balance sheet has gone from good to bad and rating agencies have downgraded their debt ratings.

So with the holiday quarter dropping 80% year over year based on their guidance in mid December, if we apply that kind of performance to the next fiscal year we get 80% of $2.60 is $2.08.  Analysts expect $2.32 (90 days ago they expected $3.52).

It's difficult to compare Best Buy to other companies since so many direct competitors are not making any money.

But the bottom line is if we consider the stock price ($29) plus all the debt ($10) divided by the earnings estimate of $2.32 - that leaves an earnings multiple of 16.8

16.8 in this market seems rather high, and Best Buy employees I've talked to are telling me this year's holiday was significantly weaker than last year.

I think Best Buy's lack of FY10 guidance…

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Market Rap's All Time Top BBY Pickers

  Rank Return Last Action Trades Name Pic
 

1

7.6%

Sell`BBY`@`18.72

2

Sandip Sharma

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