Best Buy relying on Potential Investors to save their skin

The worldwide phenomenon we have come to know of as Best Buy was founded in 1966 by Richard M. Schulze and Gary Smoliak as an audio specialty store. From that time till now they have vastly expanded their production portfolio by introducing various subsidiary brand names, most popularly known as Magnolia Audio Video, Cowboom, Pacific Sales and Future Shop in Canada. They debuted on the NYSE in 1987 and Best Buy Co, Inc. stock today is worth $25.79 which has risen by 0.94% since yesterday. During the past five years the trend regarding Best Buy stock has been ranging between $20 and $40 per share. With a market capital of $8.95 billion the consumer electronics retail giants operate on a seasonal basis and that is the reason for the unevenly shifted and unorthodox fluctuations in their stock price over the past five years.

The example of the Best Buy Co, Inc. earning on a seasonal basis is most clearly shown on its stock graph. During the past year their stock price has raised to its highest in the months of October and December. This is because of the holidays and festivities brought upon during the Christmas period resulting in higher discounts and hefty sales. The reason for the rise in stock price in the month of October was because of the newly released title from Rock Star games known as GTA Five (GTA V) on Xbox 360 as well as PS3. During this period, according to various reports customers were in queues for the whole night before the day it was released so that they can get their hands on the title first.

In 2007 the company was subjected to various environmental issues as in Greenpeace’s opinion the company contributed to unethical behavior as concerns were raise regarding deforestation in Canada. However, at the time the time Best Buy was vary of this fact and wasted little time to wipe this stain of its image because it was the wisest of things the corporation could do at the time. They achieved this end by launching Greener Together which reduced consumer waste and increased energy efficiency as far as their products are concerned. On top of this, in 2009 they brought forth to a recycling program and they have collected fifty million pounds of e-waste and consumer electronics which is offered to customers for free on their stores.    

However, currently is the end of April and Easter has already passed and despite their discounts the retail outlet have failed to capitalize on this holiday. Early in February 2014, according to various reports Best Buy Co, Inc. discharged approximately more than a 100 of its employees especially in their Future Shop outlets in Canada. This shifting in their productive process is apparently the reason for their failure in capitalizing upon a promising Easter. Furthermore is the fact that their long time president of US retail outlets is retiring. Best Buy Co, Inc. has been in a slump as of late as their stock has dropped from $40 per share to $26 per share in the first quarter of 2014 (for more Best Buy Co, Inc. stock news; visit www.bidnessetc.com). This is because their performance as far as their earnings from revenue is concerned has fallen short compared to their as well as the estimates of many financial analysts. The only hope for the company now is for their potential investors not to lose interest in the company’s stocks as that for now remains the only most viable and effective source of income for the company.  The ratio of price to sales for the previous year was 0.20. Similarly, the ratio of price to cash was 2.93 and the company showed a negative performance in the previous week as -0.41%.