Wednesday, September 14, 2005

Best Buy Floored After Conference Call

Sometimes the stock market will throw a sale at you.

If you're not poking around in the basment section of the Wall Street store, you could miss out on some really overlooked and undervalued items, like Best Buy.

Best Buy (BBY) was crushed on Tuesday after management lowered guidance and talk continued about higher gas price's effect on discretionary consumer spendng.

What that means for the "value "investor is that Best Buy is now at an attractive buying level.

How do you determine if a stock is getting unnecessarily clobbered?

I like to ask myself: Is the stock price deterioating much faster than the business (model) underneath it?

Best Buy the stock gets bullied around but Best Buy the enterprise remains a market leader.

I heard the conference call (twice) and I think management has its game together.

I'll take Best Buy over Walmart or Circuit City any day of the week.

BBY is 10 points off its 52 week high and we feel a regression to the mean is in order for the consumer retailer -- let's see what the holiday season has in store for it.

In light of Tuesday's selloff, we're issuing a short term Strong Buy Rating on Best Buy shares.

The middle class is finally beginning to feel the pain at the pump, but at the end of the day, mom still needs her camera phone and junior his coveted iPod nano.

About Us | In the News | Management | Contact Us | Archive | Premium Membership | Terms of Use | Privacy Policy | Careers | FAQ

All quotes are 15 minutes delayed. Copyright © 2006 by Catablast! Media Group LLC, part of the SeekingAlpha network. Web Design by Synexio Systems. All Rights Reserved.