Stocks to Sell #1: Best Buy (BBY)
Click to Enlarge Best Buy (BBY), the well-known electronics giant, went on a tear in 2013 as its price-match policy helped win back market share from Amazon (AMZN) and other online competitors. Shares more than quadrupled at one point, returning to levels not seen since 2010.
But BBY stock is cooling its heels now as the bloom comes off the idea, with electronics sales flat during the holiday shopping season, as well as the lack of a major tech wave to drive customer traffic the way HDTVs did during Best Buy’s heyday.
BBY stock is in a confirmed downtrend, rolling down its lower Bollinger band. A move to the 200-day moving average would be worth a 15% decline from here. I’ve added BBY short to my Edge Letter Sample Portfolio.