October 23, 2008

Best Buy on Sale

The Fool points out that shares of Best Buy have decreased 36% over the last four weeks. Shares briefly achieved a new 52 week low today as they dipped under $22 a share. Still, buying shares at $22 could proved to be a great entry point. Consider:

  • Best Buy has not lowered guidance for 2009.
  • $22 per share equates to a current P/E of 7, a forward P/E (FYE March 2010) of 7, and a PEG ratio of .57.
  • The CEO bought shares on October 14 when shares were at $27.60
  • Matthew Paul, who sits on the board bought shares three separate times in October at an average price of $31 a share.
  • The stock will pay a 2.3% dividend while you wait for shares to appreciate.
A quality company that is trading at a new low coupled with insider purchasing? All signs point to buy!

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