Cramer: Best Buy's Worth Waiting With
This column was originally published on RealMoney
on April 4 at 9:11 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney,
The market may not instantly reward
(BBY) for what it's doing. Yet, it is clear that even when Best Buy is fighting a company that's fire-saling product --
(CC) -- the profitability is still there for this great retailer. In fact,
I think that what will sift through the quarter is a little Pyrrhic. You can see plenty not to like.
But the only real takeaway is that this company has immense profitability in a most challenging environment of falling home values, a lack of people moving house and a vicious wounded competitor. It will take a long time for Circuit City to collapse, though, because it still has $4 per share in cash.Would I buy Best Buy here? Sure. Just don't expect much until Circuit City is finished blinking. But this BBY stock is beginning to remind me of J.C. Penney (JCP) when Federated (FD) decided to consolidate with May. You got a very big move before and during the collapse of the competitor. The same could be happening here without a problem. Random musings: I hope you enjoy tonight's "Mad Money" from Indiana University, which is a great school. My guest -- and IU alum -- Mark Cuban and I disagree on investing, could be some fireworks. Always is with Cuban.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV