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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Joey Two-Cents who wrote (3714)2/27/1998 4:46:00 PM
From: Keith J   of 18691
 
I realize large insider selling is usually a negative and that the huge price gains in BBY make it an obvious candidate, but when you compare BBY to CC, which is its closest competitor, you'll find that BBY is undervalued, at least on a price-to-sales basis, when you do the comparison. And for that reason, I don't think it's an obvious short at these levels. Earnings projections will likely change after their next earnings announcement. And much of their products are imported from Asia, which will help margins going forward with the strong dollar.

KJ
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