Buy, Sell, or Hold Best Buy on Today's Massive Dive?

With holiday same store sales down nearly 1%, the seemingly reborn specialty retailer delivered a chilling look today at a weaker than expected holiday shopping period. While fortunate investors have seen startling gains over the past year in Best Buy's shares, should they take today's news as an opportunity to double down or should they get out while they still can?

Jan 16, 2014 at 9:30PM

Best Buy (NYSE:BBY) just released some chilling data today from the recent holiday shopping period. U.S. same store sales were down nearly 1% indicating that even the seemingly reborn specialty retailer's efforts to drive sales via promotion didn't pay off. In fact, this only hardened the blow as management lowered guidance for Q4 operating profit as well.

While Best Buy has made significant strides over the past year to improve its fortunes, it's difficult to see the increasing level of competition ending any time soon. With (NASDAQ:AMZN) as a major competitor, there's no wonder to Best Buy's strategy for righting its ship. Take a look at management's first three bullet points for its Renew Blue turnaround plan to see what I mean :

  • Lower cost structure
  • Grow online channel
  • Innovate for multi-channel customer

This sounds like all the things that Amazon already does well to beat Best Buy to the punch. The key question now for shareholders who have rode the company's stock to incredible gains over the past year is should they double down on the massive dip, or should they sell now to protect their gains? Learn more in the latest video below from the Motley Fool's consumer goods team.

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Fool contributor Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends The Motley Fool owns shares of 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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