Diamonds and Dogs
11/16/12
Best Buy Co Inc. (BBY)Best Buy is not even an ok buy today, down 9.90% at $13.74. The electronics retailer saw its shares short circuit after two major news events. The first report was that Best Buy would match competitor's prices during the holiday season. While this doesn't seem like a bad thing for the company, a report was released stating that the company could lose out on around $400 million in profits. With Best Buy already struggling to maintain its profits, a dent of $400 million would hurt their bottom line. Further pushing shares down was news that the new CFO, Sharon McCollam, received a $4.5 million signing bonus, on top of her nearly $1 million per year salary. Investors are seeing a struggling company, foregoing $400 million in profits, and giving huge signing bonuses to executives. It's no wonder why the stock hit a new 52-week low today.
OfficeMax Incorporated (OMX)
OfficeMax is maximizing its value for shareholders today, up 12.09% at $9.23. The office supply company saw its shares pop after an IPO from Boise Cascade. Boise Cascade is a wood product company (paper, etc.) which bought OfficeMax's paper sector in 2004. As part of the deal, OfficeMax sold its paper sector but also purchased a stake in the company totaling $175 million. The investment from OfficeMax was illiquid and therefore difficult to sell their position if they wanted to. However, with Boise Cascade going public shares will be traded on the open market, allowing OfficeMax to be liquid in their position. OfficeMax management told the SEC that the gain would be seen in the company's earnings, as they plan to sell their position. The company hit a new 52-week high today.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.