|
| PRIME STOCK NEWSLETTER FOR JANUARY 12th, 2010 |
(If you do not see today's edition, please hit the refresh button) |
Position
Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher. We recommend that stop orders be placed at the time of purchase, and once the position has moved profitable we recommend a stop be placed a minimum of $0.375 above the purchase price and moved higher as the position moves higher. |
|
Today's Comments: The overall market finished Monday moderately higher on a day that saw the various sector indices I track fairly evenly mixed. There was strength in the Utilities, Pharmaceuticals, Cyclicals, Healthcare Providers, Oil & Gas, Gold/Silver, Insurance, Telecom, Consumer, Biotech, Transports, and Banking indices. There was weakness in the Oil Services, Retailers, High Tech, Broker/Dealer, Airlines, Commodities, and Chemicals. Bonds were mixed with longer term rates moving higher and shorter term rates moving lower. Oil was higher by $1.41 to $83.18/barrel, and Gold was higher by $20.30 to $1,140.56/ounce.
|
| Sterling
Calendars for January 12th, 2010 |
|
|
Recommendation: Sell/Short
Best Buy Co., Inc. 'BBY' |
| Company: Best Buy Co., Inc. |
Symbol: 'BBY' |
Closing
Price: $39.23 |
Web: www.bestbuy.com |
YH: $45.55 YL: $23.97 |
EPS: $2.62 P/E: 15 |
Shares
Outstanding: 417 Million |
Forecasted
EPS: $3.33 |
Market Cap.: $16 Billion |
| Dividend: $0.56 |
Yield: 1.40% |
Aver.
Daily Trading Volume: 6.4 Million Shares |
|
| Price Targets: $38.19 and then $36.41 |
Upside Stop: $39.23/share |
| Options Rec.: January 40 Puts @ $1.07/contract |
Options
Symbol: BBY M40 |
Additional information on Best Buy Co., Inc. 'BBY' can be found (here)
|
|
Company Description:Best Buy Co., Inc. operates as a specialty retailer in the United States, Canada, Mexico, China, and Europe. It offers consumer electronic video products, such as televisions, digital cameras and accessories, digital camcorders, and DVD players; and audio products comprising MP3 players, navigation products, home theater audio systems and components, and mobile electronics. It also offers home office products comprising notebook and desktop computers, monitors, mobile phones and related subscription service commissions, hard drives, and networking equipment; entertainment software products, such as video gaming hardware and software, DVDs, CDs, digital downloads, and computer software; and appliances, such as kitchen appliances, plumbing fixtures, snacks, and beverages. Best Buy Co. also offers service contracts; extended warranties; product repair; broadband voice, data, and information technology services; and delivers and installs home theater, mobile audio, and appliances. As of February 28, 2009, it operated 1,023 U.S. Best Buy stores, 38 U.S. Best Buy Mobile stand-alone stores, 34 Pacific Sales stores, 6 Magnolia Audio Video stores, and 6 Geek Squad stand-alone stores. The company also operated 2,465 The Carphone Warehouse and The Phone House stores in Europe, 58 Best Buy Canada stores, 3 Best Buy Mobile Canada stores, 139 Future Shop stores in Canada, 164 Five Star stores in China, 5 Best Buy China stores, and 1 Best Buy Mexico store. It also operates the Napster and Speakeasy stores. In addition, the company engages in online retailing through BestBuy.com, BestBuy.ca, BestBuy.com.cn, espanol.BestBuy.com, and BestBuyMobile.com; CarphoneWarehouse.com; Five-Star.cn; FutureShop.ca; GeekSquad.com and GeekSquad.ca; MagnoliaAV.com; Napster.com; PacificSales.com; PhoneHouse.com; and Speakeasy.net. It was formerly known as Sound of Music, Inc. and changed its name to Best Buy Co., Inc. in 1983. The company founded in 1966 and is headquartered in Richfield, Minnesota..
Chart updates daily |
A full list of the news headlines for Best Buy Co., Inc. 'BBY' can be found (here) |
|
Our Analysis: The shares of Best Buy Co., Inc. 'BBY' moved lower yesterday on heavier than normal trading volume. They finished the day by closing below a recently established support level. This is a bearish trading signal. The shares of 'BBY' should continue to move lower and test $38.19/share, a point of downside support established on October 30th, 2009. If the shares of 'BBY' close below that level as I expect they will, then they should continue to move lower and test $36.41/share, a point of downside support established on October 2nd of last year. I see upside resistance on the shares of 'BBY' @ $39.50/share, and have set my stops accordingly at $39.93/share.
|
|
|
Stocks
Looking Higher |
ACS, AMAT, IR, LCRX, UTX, PCU, LTD, AMLN, TYC, TXT, AA, INTU, KAMN, TTC, FWRD, BAK, VSEC, NXG, INTC, CAT, DE, TXT, TEX, AMLN, FMCM, PAG, BVF, JBHT, EL
|
Stocks Looking Lower |
MSFT, MOT, T, HD, AMD, CHK, DIS, M, AVP, PGR, ANF, MED, PBI, GPN, TUP, BKS |
|
| Yesterday's Edition of the Prime Stock Newsletter |
The
Sterling Investment series of newsletters is produced
by Sterling Investment Services, Inc. If
you would like to receive a chart on any index
or stock mentioned in this report please contact
us at the below mentioned numbers. We also
offer custom research reports on any stock investment
that you may desire information on. To receive
further information on these services please visit
our web page at: www.sterlinginvestments.com
If you would like to contact us our # is 800-275-6901,
fax # (404)-816-8830 Email address is: enelson@sterlinginvestments.com
Sterling Investment Services may hold positions
in the securities recommended or may be providing
consulting services to the companies mentioned
within this report. |
Copyright
1992-2009 Sterling Investment Services, Inc.
P.O. Box 191767, Atlanta, GA. 31119-1767
Fax 404-816-8830
404-816-8240 |
|
|
| Providing
Investment Banking Consulting Services to Public
Companies |
|
