1. Dunn And Over
There's something silly going on surrounding the sudden departure of Best Buy (BBY) big wig Brian Dunn. We don't know exactly what it is yet, but trust you us, when a CEO steps down as a result of "personal conduct" issues you can rest assured it will eventually hurtle down our very dumb alley.
The good news for shareholders, we suppose, is that Dunn's shenanigans were "unrelated to the company's operations or financial controls", according to Best Buy's external spokeswoman.So at the very least Best Buy investors concerned with the fact that Dunn jumped ship prior to the end of an audit committee investigation can rest a little bit easier. Or at least as easy as investors who have seen the value of their stock sliced in half over the past 5 years can rest. And since we don't know precisely what Brian Dunn did, we won't even wager a guess and risk the disappointment that the real story doesn't match up to the juicy stuff now circulating through Wall Street's rumor mill. (Ah, bless you Mark Hurd for making CEO resignations sexy again.) All that said, we do know what Dunn didn't do, and that is successfully run his company during his three-year tenure in the top spot. Once the electronics retailer to beat, Best Buy has rapidly devolved into what many gadget shoppers refer to as " Amazon's (AMZN) Showroom." And when Dunn tried to fight back against the Internet retail juggernaut, he failed miserably as evidenced by the company's catastrophic performance last holiday season when it proved unable to deliver gifts ordered online before Christmas morning. Most recently, Best Buy posted fourth-quarter results that missed Wall Street's revenue forecast. It also announced the closure of 50 of its U.S. stores in fiscal 2013 as part of a plan to cut $800 million in costs by fiscal 2015. Put it all together and its quite clear that Dunn should have cut himself out of the picture a long time ago. "I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future," said Dunn in a press release. That's all well and good Brian. But until we hear the whole story, we don't think you're done just yet. Written by Gregg Greenberg in New York.
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