Barron's says Best Buy could go to $52 a share..

Discussion in 'Wall St. News' started by S2007S, Mar 30, 2008.

  1. S2007S


    This stock is NOT a BUY NOW, I see it back in the lower 30's, this stock will not "FARE" well in a recession at all. Everyone seems to be running for Blu Ray, but eventually like DVDS, will fade even faster, DVDs are going bye bye as the set top box will become king of the entertainment world.

    :p :p :p

    Barron's says Best Buy could go to $52 a share
    Posted March 24th, 2008 by Ted Gottsegen
    in Barron's is in love with Best Buy Co. (NYSE:BBY) this weekend and is speculating the largest U.S. consumer-electronics retailer may surge 23% to $52 in New York trading once investors overcome fears of how the company would fare in a recession

    Here's the lowdown from Reuters:

    Shares of Best Buy Co (BBY.N: Quote, Profile, Research), the largest U.S. consumer electronics retailer, look especially attractive for long-term investors, given expectations for increasing consumer appetites for video games, DVDs and televisions, Barron's said in its March 24 edition.

    Shares of the Richfield, Minnesota-based company closed Thursday at $42.41, down 21 percent from their 52-week high set in December.

    But Barron's said the shares are trading at about 12.5 times estimated fiscal 2009 earnings, below the normal 15 to 18 multiple, and about 6 times estimated 2009 cash flow per share, compared with a normal nine times cash flow.

    Best Buy on February 15 trimmed its full-year profit forecast to a range of $3.05 to $3.10 per share from a range of $3.10 to $3.20. Yet Barron's said several factors warrant optimism.

    It said Best Buy should benefit from increased sales of higher-margin software for Sony Corp's (SNE.N: Quote, Profile, Research) (6758.T: Quote, Profile, Research) PlayStation 3, Nintendo Co's (7974.OS: Quote, Profile, Research) Wii and Microsoft Corp's (MSFT.O: Quote, Profile, Research) Xbox 360.

    The company should also benefit from the end of a format war over next-generation DVDs, where Sony's Blu-ray format won over Toshiba Corp's (6502.T: Quote, Profile, Research) HD DVD, Barron's said.

    In addition, Barron's said Best Buy will see sales tied to a government-mandated conversion to a digital television standard next February.

    Households without cable or satellite hook-ups will have to either buy digital televisions to keep receiving free over-the-air transmissions or buy converter boxes, Barron's said.
  2. I would rather play SIGM which has a potential for a HUGE gain.
  3. S2007S




    I hope no one bought on their foolish advice. How F$$king dumb do you have to be to buy BBY.


    :p :p :p :p :p
  4. I've been to best buy. No one seems to buy anything except for the lower end goods like CDs and DVDs. Going to $7 probably