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Frozen Bob with a cold,
I agree with everything you wrote about the long term prospects of BBY. But I'm not planning to hold this stock for a long time. Hmmm, sounds like what I said when I bought DIGI back in October. Well, I learned my lesson there and I will sell at a loss if I misread the tape. Like I said, I bought for two reasons:
1. The stock held $11 after all the bad news came out that a couple of analysts downgraded the stock and Moodys downgraded the debt. If you remember, I wrote on Thursday that I expected the stock to be downgraded and I would be watching to see how the stock reacted to the news. The reaction was favorable and I think this will lead to a short term up move. Here's a link to the post: techstocks.com
2. There was a big buyer sitting on the bid at 11 virtually all afternoon on December 20. An institution was buying every share that was being sold at 11. It's unusual for BBY to have a bid size of 1,300. It happens occassionally, but not very often.
Reference your comments about how BBY can get out of this mess. At the moment, I think the only way out is for them to merge with a stronger competitor like CC or TAN Computer City unit. This sounds like a wild and crazy idea, I admit, but BBY does have very good name recognition and I think this makes them a good takeover candidate. If this happens, IMO, the merged company would close stores that are in close proximity to each other and only keep those stores that are far enough away from the buying company.
It is possible, although I'm not positive, that options expiration held the stock down on Friday. We'll find out if I made the right decision on Monday.
Dan
PS: I hope you go back to being just Frozen Bob (lose the cold). |
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