Best Buy (BBY) is the largest consumer electronics retailer in the U.S. There is no doubt that this company has some problems to contend with over the last year. After CEO Brian Dunn was found to have participated in inappropriate relationships with another employee, he resigned from his position, and a new CEO, George Mikan III (of the basketball Mikan family), was installed as interim CEO.
The company and industry is struggling with tight-fisted consumers, lack of new must-have products, declining video and music disc sales and cheap Internet rivals. The key for Best Buy will be to downsize its operations and become more competitive with the e-tailers, which is not a feat beyond possibility.
The stock is hated, and any turnaround could convert sellers to buyers.Best Buy was also featured recently in "5 Stocks Insiders Love Right Now." Tech Data Tech Data (TECD) is a wholesale distributor of computer and technology products and peripherals. The company is expected to increase earnings by 115 in the current year and 7% next year. Sales are expected to decline this year, but that might be a result of strategic divestitures in South America. The company has $400 million in cash net of long-term debt, which accounts for approximately 20% of the company's market capitalization. The company has very strong cash flow, which was applied to the repayment of debt and stock repurchases. To see these stocks in action, visit the 7 Value Stocks portfolio. -- Written by Scott Rothbort in Millburn, N.J.
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