I read a pretty interesting article on one of my favorite retailers, Best Buy (BBY). Morningstar is an industry leading financial analysis firm and recently included BBY in an article called “The Market’s Got It Wrong On These 5 Stocks”. I want to bring BBY to the attention of all the Urbanomics followers out there.
People often ask me, “What’s Your Strategy?”. And often I can’t give them a polished and insightful Wall Street response. My strategy is quite simply to follow in the mantra of Rick Ross, “Hustlin’”. Everyday I am hustlin’…hustle smarter and in some cases harder. So I keep my ears to the Street…literally and look for themes that I often agree with. I don’t recreate the wheel, I pay homage to those who have come before me and use the tools they put in place to learn how to ball out of control. I will admit that the stocks I have normally gravitated towards are deeply undervalued stocks that will benefit from the momentum of the market to catapult them to the returns that I am looking for. I know, I know…I am new school too and too much yapping and not enough proof is what we all want. Let look at a few of my purchases in the last few years, which have been consistent with this theme:
People often ask me, “What’s Your Strategy?”. And often I can’t give them a polished and insightful Wall Street response. My strategy is quite simply to follow in the mantra of Rick Ross, “Hustlin’”. Everyday I am hustlin’…hustle smarter and in some cases harder. So I keep my ears to the Street…literally and look for themes that I often agree with. I don’t recreate the wheel, I pay homage to those who have come before me and use the tools they put in place to learn how to ball out of control. I will admit that the stocks I have normally gravitated towards are deeply undervalued stocks that will benefit from the momentum of the market to catapult them to the returns that I am looking for. I know, I know…I am new school too and too much yapping and not enough proof is what we all want. Let look at a few of my purchases in the last few years, which have been consistent with this theme:
I am including a link to the Morningstar article so that you can read one of their writer’s views on why the street has this stock wrong. I agree with most points raised in this article. Best Buy has some of the key things I look for when I follow Warren Buffet, Peter Lynch, and the Urbanomic strategy.
Buffet Likes Because: This is a best in class stock that is undervalued. The stock has been beaten down and thanks to a poor earnings release, hammered even more (I know, I’m getting excited). This creates a good entry point near the 52 week low and what I think is some margin of safety (I’d rather by BBY on the way down then when they are up).
Lynch Would Be Proud Because: You buy stocks that you know and are familiar their product or business. I practically know where everything is in a BBY store.
Urbanomics Is Hustlin’ Because: Buffet and Lynch like a number of things about this stock. Urbanomics also like the fact that this stock is beaten down (like they stole somethin’), best in class, and there is a catalyst. BBY is raising its dividend payout and implementing a share buyback. Finally, we get a chance to buy this stock ahead of the winter season. And we all know retailers, will be cashing in during the holidays and earnings will see a much brighter day.
Morningstar article:
http://news.morningstar.com/articlenet/article.aspx?id=197250&pgid=wwhome1a
Buffet Likes Because: This is a best in class stock that is undervalued. The stock has been beaten down and thanks to a poor earnings release, hammered even more (I know, I’m getting excited). This creates a good entry point near the 52 week low and what I think is some margin of safety (I’d rather by BBY on the way down then when they are up).
Lynch Would Be Proud Because: You buy stocks that you know and are familiar their product or business. I practically know where everything is in a BBY store.
Urbanomics Is Hustlin’ Because: Buffet and Lynch like a number of things about this stock. Urbanomics also like the fact that this stock is beaten down (like they stole somethin’), best in class, and there is a catalyst. BBY is raising its dividend payout and implementing a share buyback. Finally, we get a chance to buy this stock ahead of the winter season. And we all know retailers, will be cashing in during the holidays and earnings will see a much brighter day.
Morningstar article:
http://news.morningstar.com/articlenet/article.aspx?id=197250&pgid=wwhome1a
No comments:
Post a Comment