Best Buys Warns

http://biz.yahoo.com/bw/070619/20070619005766.html?.v=1

During the first quarter of fiscal 2008, Best Buy repurchased approximately 8.7 million shares of its common stock at an average price of $47.21 per share, for a total of $412 million.

In comparison, the company repurchased $599 million and $772 million in fiscal 2007 and fiscal 2006, respectively. At the end of the first quarter of fiscal 2008, the company had $0.8 billion remaining under the $1.5 billion authorization for share repurchases announced in June 2006.

when they continue their run rate of the first quarter they will have to spend the complete operating cash flow ( $ 1,7 billion) from the past year…. and this year the cf should be lower….

the more details you read .......the weaker the numbers look.

wouldn´t be surprising to see some "activist" trying to push for a debt offering to buy back stcoks down the road......especially when they will warn again....

 

Best Buy is still plenty profitable, so it's not on my radar as a short. It's interesting to note the difference between Best Buy's US and international sales:

Same Store Sales:
International +12.8%
US +1.7%

Operating Profit:
International -$4 million
US +$270 million

The product mix is also interesting:
Home Office +6.7%
Consumer Electronics +1.4%
Appliances +0.7%

hi rodger,

i agree. there are far better opportunities out there...

but Best Buy represents how big the part of buybacks etc on earnings is in almost every earnings report.

and when you don´t have enough liquidity to do a buyback.... put yourself up for sale.....like wendy´s....

 

 

 

Best Buy sets $5 bln stock buyback

http://biz.yahoo.com/bw/070627/20070627005556.html?.v=1

Based upon the company's anticipated future earnings and cash flow, its strong balance sheet, and the planned capital needed for the company's growth plans, the Board of Directors of Best Buy has authorized the establishment of a new, $5.5 billion share repurchase program. The new program terminates and replaces the company's prior $1.5 billion share repurchase program, which was announced on June 21, 2006.

Edited 1 time(s). Last edit at 06/27/2007 08:19AM by jmf.