Shares of electronics retailer Best Buy (NYSE:BBY) are down roughly 3% today on the news that co-founder Richard Schulze plans to start selling shares of the company he founded. This is a dramatic turnaround from the former CEO's attempts to take Best Buy private only a few months ago. Does Schulze know something we don't? According to him, he's just looking to "diversify assets and raise money," but Fool One associate advisor David "The Legend" Meier thinks the CEO has a different goal entirely.
David thinks that it's much more likely Schulze is simply looking to cash out on Best Buy's big gains over the last year. Best Buy shares are up more than 100% in the last 12 months, a 180 from where the company was at the beginning of the year. The company has enjoyed a good run, but David is concerned about where it's heading. Best Buy has used dramatic cost-cutting methods to improve earnings, but its sales continue to contract as it competes with companies like Amazon. This means that as Schulze sails into the sunset, investors may be left holding the bag.
David Meier and Fool contributor Mark Reeth have no position in any stocks mentioned, and neither does The Motley Fool. 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.