| Company Name: Best Buy, Inc | Stock Symbol: BBY | Industry: Electronics Retail |
| Percent Appreciation: 4,000% | Number of Bags: 40 | Holding Period: 9 Years |
| Entry Date & Price: March,1997 @$1.25 share | Exit Date & Price: December, 2006 @ $51 share | Original Investment($10,000): $400,000 |
Company Description: Best Buy Co., Inc. operates as a multi-national, multi-channel retailer of technology products in the United States, Canada, China, and Mexico. Its stores offer consumer electronics consisting primarily of television and home theaters; digital cameras and camcorders; DVD and Blu-ray players; portable electronics, such as MP3 devices, headphones and speakers, car stereo, navigation and satellite radio; and all related accessories. The company’s stores also provide computing and mobile phone products, including notebook and desktop computers, tablets and e-readers, mobile phones and related subscription service commissions, and related accessories; entertainment products, such as video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads, and computer software; and appliances, including large and small appliances, and kitchen and bath fixtures, including faucets, sinks, toilets, and bathtubs. It also offers extended warranty service contracts, technical support, product repair, delivery, and installation services, as well as offers snacks and beverages
Quick Trading Overview & Objective: While Best Buy’s stock price has appreciated over 44,000% (440 bagger) since the company first went public in the mid 1980’s, we will be concentrating our attention on a more recent period. We will initiate our coverage at 1997 bottom of around $1 a share (split adjusted) and see what had caused the company to appreciate over 4,000% between 1997 and 2006.
We will now go back in time and take an in depth look at the company in order to determine if we could have taken a long position at that time. More importantly, we will look at Best Buy’s fundamental and trading patterns over that period of time in order to ascertain if we would have been able to maintain our position over a 9 year period of time while getting out at the top.
