Practice Mode

Best Buy · November 2012

BBYConsumer goods1-year horizonHard

Imagine you already own shares of this company.

Everything on this page is limited to information available on November 26, 2012.

The situation

Date
November 26, 2012
You own
Shares of Best Buy
Period
1 year, until November 2013

Decide what to do with your shares.

The company at the time

Best Buy is the largest electronics store chain in the United States. Its sales have stopped growing and are slipping at stores open for more than a year, as more people buy electronics online. Many shoppers look at products in its stores and then buy them online for less, often from Amazon, a habit called showrooming. In its last full year, which ended in March 2012, it reported a loss of more than $1 billion, mainly from write-downs and restructuring costs, and last week it reported another loss for the latest quarter. The chief executive resigned in April, and the founder and largest shareholder, Richard Schulze, has offered to buy the company and take it off the stock market. A new chief executive, Hubert Joly, started in September and has just presented a turnaround plan called Renew Blue. The share price has fallen by about half over the past year.

Information available at the time

The same numbers as on company pages, as they had been reported by November 26, 2012. Sector medians aren't shown because StockLab doesn't have them as they stood back then.

Revenue, growth, profit and cash flow are for fiscal year 2012 (ended March 2012), the latest full year in an annual report filed by then; cash and debt come from the latest report (its date is on the card). Results announced after that aren't in these cards yet, even if the story above mentions them, so their numbers can differ.

Click any metric to see what it means.

$12.48

Close on Nov 26, 2012

$4.20B

  • $50.7B
    Previous year:
    $49.7B
  • +1.9%
    Previous year:
    +1.0%
  • −$1.23B
    Previous year:
    $1.28B
  • −2.4%
    Previous year:
    2.6%
  • $2.53B

    Positive in each of the last 4 years

  • $680.0M/$2.23B
    Cash23%
    $680.0M
    Debt77%
    $2.23B

    As of Aug 4, 2012

  • Not in the SEC data

    11.8

5-year trends

Annual figures, fiscal years 2009-2012.

Revenue by fiscal year, from 2009 to 2012. 2009: $45.0B, 2010: $49.2B, 2011: $49.7B, 2012: $50.7B

Stock price

Useful context, but not the main focus.

−51.3% over the past year Stock price chart, 1 year. From Nov 25, 2011 to Nov 26, 2012.

Drag across the chart to compare two days.

Future prices are hidden until you decide.

What would you do?

No virtual money and no score. After you choose, you'll see what happened and a review of the reasoning.