Shares of Best Buy have been volatile early on this morning as rumors circulate that a ‘notable market-research firm’ said Q1 sales are trending above analyst estimates.
The retail climate has been absolutely atrocious. If we go two weeks into the Exodus Strategy Session archives we can recall just how much bodily harm was inflicted on the industry set recently:
Yet over the same time period, Best Buy shares [ticker: BBY] have been more-or-less flat. Quite curious yes yes?
The chart looks tight. The kind of chart you can build a position into and manage risk without too much confusion. However, you need to go into this idea accepting the potential of a 25% draw down before knowing if you’re wrong. Or you could play it tighter, risk less, size in more, and look to scale sooner. It is just a matter of how much time you’re willing to commit to the position.
Not many people expect Best Buy to come out swinging. They are Amazon’s show room. I imagine Bezos feels rather gay every time he sees a 10,000 square foot Best Buy brick and mortar outlet. This could be the upside sleeper of summer ’16, like an old donkey winding its way up the mountain.
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They’re the only game in town if you want to pick up a tv or ipad. Who else is there ? Worth the risk I think.
In the land of the blind, the one eyed man is king.
I’ll have 2 watch this from the sidelines….
For now, me too. But it still interests me