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Started By
Message
Best Buy
Posted on 2/3/09 at 9:01 pm
Posted on 2/3/09 at 9:01 pm
Okay..so I got into Best Buy at $17.95. My thought process was that its main competitor was weakened to a point of no return and it was cheap on a forward P/E basis ($2.30/share was the low end of FY 2009 guidance, making for a P/E around 8 or so)
Well, Best Buy is $28.56 right now. That would mean I have a return of 59%.
Should I stay in the stock. It's main competitor Circuit City has gone bankrupt. While consumer confidence is low and discretionary spending is down, I think this is a great long term play.
Thoughts?
Well, Best Buy is $28.56 right now. That would mean I have a return of 59%.
Should I stay in the stock. It's main competitor Circuit City has gone bankrupt. While consumer confidence is low and discretionary spending is down, I think this is a great long term play.
Thoughts?
This post was edited on 2/3/09 at 9:17 pm
5
Posted on 2/3/09 at 9:13 pm to BigBoyTiger
might want to fix that, but take 59%
This post was edited on 2/3/09 at 9:20 pm
Posted on 2/3/09 at 9:17 pm to TigerintheNO
quote:
but take 59%
I am seriously considering that.
Posted on 2/3/09 at 9:26 pm to BigBoyTiger
Take it. You made your play and you should reap the benefits. Earnings can go down in a hurry, and they will. Congrats on your gain.
Posted on 2/3/09 at 9:31 pm to LSUtoOmaha
quote:
Congrats on your gain.
Thanks. I also hit pretty big with United Healthcare. I bought in at $23 and it is now over $30. I think I may take these gains too, but we will see. I need to sit down and figure this out, devoid of emotions...
Posted on 2/3/09 at 9:37 pm to BigBoyTiger
Best way to do that is get hammered drunk, THEN make your decision. You'll thank me later.
Posted on 2/3/09 at 9:43 pm to kfizzle85
Gotcha...I like this board because there's not a lot of idiots on here. There's a lot of capitalist-loving investors who are interested in finance and the economy.
Posted on 2/3/09 at 9:50 pm to BigBoyTiger
I don't know how often you're on here, but the guy that's been closest to accurate has been saying for the past year that mostly all equities have plenty of room to go down.
Posted on 2/3/09 at 9:58 pm to BigBoyTiger
I don't know the fundamentals of the stock, but I do believe part of Best Buy's success has been the installation services for TV's. I doubt that will continue. The early adopters and people buying TV's nice enough to pay a few hundred extra for install already have bought their nice TV. Also, TV prices have come down enough to discourage another profitable product, extended warranty sales. I just don't see how they can keep doing as well in this economy, even with Circuit City going down.
Posted on 2/3/09 at 10:09 pm to TigerinATL
All fair points.
Posted on 2/4/09 at 8:07 am to BigBoyTiger
Sell half of it. Keep half to possibly make a really big profit.
Posted on 2/4/09 at 10:04 am to BigBoyTiger
Seems to me like total insanity to be long this stock. What do you think your legitimate upside is versus your downside. I'd guess it's wildly asymmetric (and in the wrong direction).
Posted on 2/4/09 at 1:14 pm to Tiger JJ
quote:
Seems to me like total insanity to be long this stock.
Or long on pretty much any stock at the moment...the OP should take his money and run. Best Buy probaly got an emotional bounce off of CC going under, but still isn't in a position for big run up...
Posted on 2/4/09 at 3:50 pm to BigBoyTiger
If you plan on holding you might want to put in a stop loss that would lock in some of the gains you have made to date.
Posted on 2/4/09 at 9:37 pm to Poodlebrain
Posted on 2/5/09 at 8:08 pm to BigBoyTiger
An update: I decided to go ahead and sell and take my 60% return today.
Posted on 2/5/09 at 8:17 pm to BigBoyTiger
Posted on 2/5/09 at 8:23 pm to BigBoyTiger
quote:
BigBoyTiger
Nice
Posted on 2/5/09 at 8:27 pm to Ziggy
Thanks, gents. I appreciate the advice fellow investors gave me on this board. I am confident I made the right decision.
Posted on 2/5/09 at 8:37 pm to BigBoyTiger
Just come here more often. This is the best section of a message board ever.
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