This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Best Buy's New Life After Takeover Trauma

Stocks in this article: AAPL GOOG AMZN BBY MSFT

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

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs