Black Friday’s Improbable Winners


24/7 Wall St.

Some stocks become so badly beaten down that they become improbable bets for rebounds. Right now, in retail, several are so battered that modestly improved results in Black Friday weekend sales could send their shares to substantial gains.

The first among these is Best Buy Co. Inc. (NYSE: BBY). Wall St. rejected the turnaround plan of new CEO Hubert Joly, at least based on the huge sell off in the stock when he disclosed his program. Investors looked at his solutions as vague and naive, particularly in the face of Amazon.com Inc.’s (NASDAQ: AMZN) e-commerce dominance. But Joly may have one plan that could work. Most bricks-and-mortar stores fear what is called “showrooming.” Customers come to stores to examine products, and then buy them online at low prices. Joly’s theory is that showrooming brings in a lot of extra shoppers during holidays, and, with low prices…

View original post 618 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: