This Company Has Investors Flying Blind
It's been an active start to the week for Best Buy investors. Yesterday, the company announced the appointment of Hubert Joly as CEO, replacing interim chief George Mikan. Investors didn't perceive Joly's background in the travel and hospitality business to be a logical fit for the electronics retailer, and quickly sold off shares to the tune of 10%. Today, the company reported worse-than-expected quarterly results and, just to top off the ultimate Wall Street horror story, suspended its guidance. In the following video, Brenton and Austin discuss the Best Buy news in more detail.
The investor reaction to Joly's hiring reminds me of Ford's 2006 move to hire Boeing alum Alan Mulally as CEO. It wasn't the most logical fit in some regards, but the company has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But Ford's stock price is down over 10% year to date. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on right now, and why. Simply to get instant access to this premium report.
The article This Company Has Investors Flying Blind originally appeared on Fool.com.Austin Smith owns shares of Ford Motor and SUPERVALU. Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy, Ford Motor, and SUPERVALU. Motley Fool newsletter services recommend Ford Motor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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