For a business named "Company of the Year" by Forbes less than 10 years ago, Best Buy (BBY 0.66%) 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.
