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5 Stocks With New CEOs to Stay Away From

Stocks in this article: HPQ YHOO SNE BBY RIMM

Best Buy

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Best Buy (BBY) CEO Brian Dunn recently resigned under a cloud of intrigue for what was initially reported by the press as improper personal conduct. Speculation was that he had an affair with a co-worker. The reason does not really matter. Dunn is done, and the hunt for a new CEO is under way.

That new CEO will be faced with mounting problems at the nation's largest consumer electronics retailer. So don't put your capital behind the company and its new CEO, whoever that might be. In fact, the company recently reported that it will close 50 U.S. big box stores. This is not good for a company that has spent the last decade beating up on competition and expanding its presence. Best Buy has for the most part become a showroom for Amazon (AMZN) and Apple products.

As I mentioned above, the margins for consumer electronics are already being squeezed. Best Buy is a good company in a broken industry, whose graveyard is already littered with the carcasses of companies such as Crazy Eddie, Circuit City, 6th Avenue Electronics and Incredible Universe. If Best Buy does not reinvent itself, it might be looking for its own grave plot.

To see these stocks in action, visit the 5 Companies With New CEOs to Avoid portfolio.

And also check out part 1 of this series: " 5 Stocks With New CEOs to Stick With."

-- Written by Scott Rothbort in Millburn, N.J.

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At the time of publication, Rothbort was long AAPL stock and calls, although positions can change at any time.

Scott Rothbort has over 25 years of experience in the financial services industry. He is the Founder and President of LakeView Asset Management, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of TheFinanceProfessor.com, an educational social networking site; and, publisher of The LakeView Restaurant & Food Chain Report. Rothbort is also a Term Professor of Finance at Seton Hall University's Stillman School of Business, where he teaches courses in finance and economics. He is the Chief Market Strategist for The Stillman School of Business and the co-supervisor of the Center for Securities Trading and Analysis.

Mr. Rothbort is a regular contributor to TheStreet.com's RealMoney Silver website and has frequently appeared as a professional guest on Bloomberg Radio, Bloomberg Television, Fox Business Network, CNBC Television, TheStreet.com TV and local television. As an expert in the field of derivatives and exchange-traded funds (ETFs), he frequently speaks at industry conferences. He is an ETF advisory board member for the Information Management Network, a global organizer of institutional finance and investment conferences. In addition, he is widely quoted in interviews in the printed press and on the internet.

Mr. Rothbort founded LakeView Asset Management in 2002. Prior to that, since 1991, he worked at Merrill Lynch, where he held a wide variety of senior-level management positions, including Business Director for the Global Equity Derivative Department, Global Director for Equity Swaps Trading and Risk Management, and Director for secured funding and collateral management for the Global Capital Markets Group and Corporate Treasury. Prior to working at Merrill Lynch, within the financial services industry, he worked for County Nat West Securities and Morgan Stanley, where he had international assignments in Tokyo, Hong Kong and London. He began his career working at Price Waterhouse from 1982 to 1984.

Mr. Rothbort received an M.B.A., majoring in Finance and International Business from the Stern School of Business, New York University, in 1992, and a B.Sc. in Economics, majoring in Accounting, from the Wharton School of Business, University of Pennsylvania, in 1982. He is also a graduate of the prestigious Stuyvesant High School in New York City. Mr. Rothbort is married to Layni Horowitz Rothbort, a real estate attorney, and together they have five children.

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