You gotta listen to the Gripedaddy. He knows what he is talking about.
Just 12 weeks after Gripedaddy said he sensed that Best Buy was vulnerable and predicted the company could not continue to operate the way it was operating, the national electronics retailing giant, is in turmoil. It has fired its CEO, launched an internal investigation into possible misuse of company funds, announced the closing of 50 stores and seen its share price drop over 20% in a week. lopping over 2 billion dollars from the company’s market cap as investors scramble to make sense of it all.
Of course, Gripedaddy saw it coming a mile away.
Best Buy CEO Brian Dunn unexpectedly resigned last week after the company disclosed an internal investigation of his personal conduct. The Wall Street Journal is reporting that Best Buy is investigating whether Dunn “misused company assets in the course of an alleged relationship with a female subordinate”. The paper says the woman is “a 29-year-old who worked in a leadership training institute at the company’s Richfield, MN.
On March 29th, Best Buy announced plans to close 50 U.S. stores. The company has already closed two stores this year and confirmed the 42 other store locations that will close. A complete list of store locations can be found at the end of this statement. Employees of these 42 stores have been notified this morning.
The Mount Vernon store, the focus of Gripedaddy’s ire, is not on the list.
Best Buy (BBY) was trading on the New York Stock Exchange at $28.00 a share in December 2011 when the video was recorded.
It was still at 27.51 on March 23rd but dropped over 20% in a week to a low of $21.32.
The above video is Part 1 of a 4 Part Series. The other three parts follow below: