NEW YORK ( TheStreet) -- The following stocks hit 52-week lows on Monday: Best Buy ( BBY), First Solar ( FSLR), James River Coal ( JRCC), Newfield Exploration ( NFX), Southwestern Energy ( SWN) and EXCO Resources ( XCO).
Best Buy "Our LBO model shows that on a paper a deal is feasible at a price in the high $30 range, but, for the reasons listed below, we think a deal is unlikely: 1) Market share losses and increased competition would make it difficult for a buyer to stabilize comps and margins. Comps have fallen 2 years in a row and margins fell 50 bps last year. 2) The chairman Richard Schulze owns just under 20% and may be an unlikely seller. 3) At a high $30 range, the deal would require nearly $11b in debt and $5b in equity, bigger than recent LBO's in the space, which would make it difficult," Deutsche Bank analysts wrote in an April 18 report. Shares of Best Buy hit a 52-week low on Monday of $21.31. The stock's 52-week high of $32.85 was set on June 21. Best Buy is trying to cut costs to the tune of $800 million by fiscal year 2015 through layoffs and store closures. The retailer announced earlier this month the location of 50 store closings. The company's board is looking for a new CEO following Brian Dunn's resignation earlier this month due to "personal conduct" issues. Best Buy trades at an estimated price-to-earnings ratio for next year of 5.78 times; the average for specialty retailers is 15.84. For comparison, GameStop ( GME) has a higher forward P/E of 6.46. Twenty of the 29 analysts who cover Best Buy rated it hold. Five analysts gave the stock a buy rating and four rated it sell. TheStreet Ratings gives Best Buy a C grade and hold rating. The stock has fallen 6.68% year to date.
James River Coal "We remain comfortable with our Neutral rating on JRCC," Davenport analysts wrote in a March 22 report. "We are concerned about the company's high-cost thermal coal position and its uncommitted thermal coal position in 2013. Current CAPP thermal coal prices are well below the company's 2012 cost guidance of
Southwestern Energy "SWN could further reduce this year's $2.1 billion capital budget due to weak natural gas prices with its projected cash flow based on current strip natural gas prices