Not sure I'd say Best Buy is a value stock, but I like BBY around current price, and I have a few shares bought recently.
This is not going to be a good Christmas for retailers perhaps:
"Retailers may have worst holiday in five years, NRF says"
marketwatch.com
It's just that historically BBY has put up good numbers; they're still growing - overseas too; they apparently sell stuff that people want; they are reported to be taking market share from competitors (i.e. CC).
In the July 23,2007 Barron's article on Best Buy and other retailers, two strong reasons for the BBY case were given: the growing video game software business (and my opinion is that these could be things that people might afford and will want during the holiday shopping season); and the legislated transition to digital television in Feb. 2009.
Retail stocks I am following seem to be taking a beating: recession coming and/or consumer is finally tapped out? (no more money from home equity; mortgage rates going up; jobs disappearing).
I don't know. I'm hoping for a muddle-through. Economy - from my narrow view of my little environment - doesn't look that bad to me. So far anyway. I continue to hold BBY, BBBY, others that I've mentioned. I see a few fund managers I like buying into BBY or holding shares (I hope they are still in.): Capital Research, Leon Cooperman, Bill Nygren, etc.
For a pessimistic perspective, Bill Wexler's thread seems to have that covered. He is short these stocks:
Subject 53990 |
