This Best Buy-out Could Flop

Recently Richard Schulze, the founder, former chairman, and largest current shareholder of Best Buy, announced intentions to lead a buyout of the electronics retailer for between $24 to $26 a share. Shares spiked on the news initially, but have trailed off in recent days. Currently trading below $20, a deal done in the middle of the announced range offers meaningful upside for investors, but as Brenton and Austin discuss in the following video, there are plenty of reasons why this buyout could flop.

Instead of rolling the dice in hopes of a buyout, investors would be better served finding retailers with a visible path to future growth. To learn about two retailers with especially good prospects, we invite you to take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they’re planning to ride the waves of retail's changing tide. You can access it by clicking here.

Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy and RadioShack. Motley Fool newsletter services recommend hhgregg. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1980549, ~/Articles/ArticleHandler.aspx, 8/20/2014 9:06:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement