NEW YORK (TheStreet) -- As usual, short-term noise drives stock prices. It's really quite absurd when you consider how it happens.
Consider Best Buy (BBY).
Founder Richard Schulze announces he'll attempt to take the company private. Stock goes up. The media reports a setback. Stock goes down. Yesterday, we get word that Schulze and his investors are forging ahead with their plan and could pay up to $11 billion to take control of Best Buy. Stock goes up.
If you're a long-term investor, stay a mile or two away from the crowd on this one. Don't chase a stock that traders move on the basis of volatile news they know nothing about.Put BBY on your watch list. And wait until the dust settles before making any decisions. Let me tell you something straight up. I don't know a whole lot about the ins and outs of this potential bid by Schulze. However, I know the way this company intends to proceed long-term, private or public, better than most others who cover the stock. Pay close attention to the wording of a press release Best Buy put out on Wednesday:
In the PR, Gillett lauded Durchslag: He's a seasoned tech veteran whose passion, talent and experience will add tremendous value to Best Buy as we build upon the broader digital and online experience for our customers. Note: Keyword -- "tech." Compare the contents of the Best Buy press release, particularly the focus on "technology," with recent articles I have written on the company: Best Buy May Have Already Found Its New CEO (May 23.) Why Best Buy Might Follow in Yahoo!'s Footsteps (July 18.) Best Buy's Curious and Controversial CEO Move (Aug. 22.) While Gillett did not get the CEO gig, it's abundantly clear that Best Buy has loaded him with a level of responsibility that makes it safe to assume he, at the very least, co-runs the company with the current (potentially lame duck) board and new CEO Hubert Joly. When Best Buy lured Gillett away from Starbucks (SBUX), where he was head of digital ventures and CIO, I connected the dots. It was clear Best Buy was set to shift from an old and failed retail mindset to thinking more like a tech company. More like innovative brands such as Starbucks, Lululemon (LULU) and Apple (AAPL).
Best Buy Hires Top Global Technology TalentBest Buy today announced that Scott Durchslag has been named senior vice president Best Buy and president Online and Global e-Commerce ... Durchslag will report to Stephen Gillett, president Digital, Global Marketing and Strategy (bold emphasis added).
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