Why buy Best Buy. First of all its the leader in its industry. Circuit City just made the genius decision to fire its highest paid, best floor staff to cut costs. Radio Shack brick and mortars are less than half the size. Destroying the competition isn't a good enough reason to invest. The company is operated well and has consistent rising earnings per share and good cash flow and even pays a dividend. The company is customer oriented. They just announced that 200 Apple in-stores will be implemented. This is a sleep at night stock in my opinion because of their competitive advantage and likely stable future prospects. I'm not sure in 15 years how the internet will factor though.

None of this matters though unless the shares are undervalued. The company can fetch a premium stock price and can grow EPS at 15% year over year. Its currently selling for about 17 times earnings at $47. I think at a PE in the low teens it may be undervalued this year. It could become more attractive in a market sell off or recession which would be a good time to pick up shares.

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