This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Best Buy's New Life After Takeover Trauma

Clearly, Best Buy will need to show its Samsung partnership can drive consumer traffic and sales, as the retail concept is rolled out nationwide.

Were the company to demonstrate success, investors might also look for similar concepts from the likes of BlackBerry and HP given a mutual need throughout the electronics industry to take on Apple.

Founder and returning board member Schulze may finally play a backseat role at Best Buy now that takeover negotiations have ended. In fact, Schulze's return and the appointment of two hand-picked directors may be overstated in their importance.

The board nominations fulfill an August standstill agreed between Schulze and Best Buy amid takeover negotiations. Meanwhile, Schulze's new emeritus title may simply be a tip that he'll keep his 20% stake in Best Buy shares. "This should mean that the founder will maintain the bulk of his ownership position for the near-term and lowers the risk that he will dispose of his stake in a disorderly fashion," Michael Lasser, a UBS analyst noted in a Mar. 25 client note.

After a half year of takeover trauma and what appeared to be distraction that slowed Best Buy's strategic realignment, Thursday's Samsung partnership indicates Best Buy, once again, has control of its turnaround plan.

For more on Best Buy's turnaround, see the company's false junk ratings foundation.

-- Written by Antoine Gara in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.28 -1.60%
AMZN $657.17 9.20%
BBY $32.02 -1.90%
GOOG $691.68 0.10%
MSFT $49.86 -0.08%


Chart of I:DJI
DOW 17,711.19 -119.57 -0.67%
S&P 500 2,055.29 -20.52 -0.99%
NASDAQ 4,754.2870 -51.0040 -1.06%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs