3 Reasons to Buy and Sell Best Buy

For a business named "Company of the Year" by Forbes less than 10 years ago, Best Buy  (NYSE: BBY  ) sure tumbled from the top in a hurry. Is it time to bet some money on a return to greatness? Or should you sell any stock that you currently have?

To help answer this question, check out our new premium report on Best Buy. For a taste of what's offered in the report, below is an excerpt describing three reasons to buy and three reasons to sell Best Buy.

3 reasons to buy

  • New management seasoned in turnarounds can breathe new life and ideas into the stagnant and withering industry.
  • Best Buy has enough free cash flow to invest in any new ideas that could save its business, as well as to avoid bankruptcy.
  • The number of Best Buy Mobile stores is set to double over the next few years, and these smaller locations should be less expensive to run than the huge big-box stores.

3 reasons to sell

  • Same-store sales are continuously falling, which could put cash flow in jeopardy. The biggest drop yet came in 2012.
  • While CEO Joly has turnaround experience, he has zero retail experience, and unstable management could make it difficult for the retailer to survive.
  • More physical locations through more Best Buy Mobile stores may not be the best plan in a time when shoppers are increasingly turning online to purchase electronics.

More in-depth analysis available
That was a sample of our new premium report on Best Buy. Pessimism has been priced into the stock, and it may offer a great chance to buy in -- or a signal to stay away. Our report can help you make that decision. For your copy, click here now.


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