|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Groupon Fires Its CEO and Best Buy Beats
Posted by: earningsyield (IP Logged)
Date: March 1, 2013 10:28AM
Markets continue to flirt with all-time highs. Let’s see how they react with the sequester starting to take effect starting today. Companies in the news today include a couple of names that are facing some stiff competition and making changes to hopefully turn things around.
Groupon’s (GRPN) stock price is slightly up after the company fired its CEO following a weak quarterly earnings report which resulted in its stock price tanking more 20%. In an e-mail to employees, ex-CEO Andrew Mason wrote the following:
"After four and a half intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family. Just kidding – I was fired today."
It doesn’t seem as if the former CEO took his firing seriously. No wonder Gurus had sold out of Groupon in the last quarter. Those selling out include:
Consumer electronics retailer Best Buy (BBY) reported earnings that were better than what analysts were hoping for. In the fourth quarter, excluding restructuring charges, income from operations came in at $1.64 per share versus analyst expectations of $1.54 per share. Helping the company beat analyst expectations were pre-Super Bowl sales which enticed consumers to purchase a new television before the big game.
Longer term, the company is doing a much better job in tackling “showrooming,” a term that describes visitors going to Best Buy stores to touch and feel a particular product only to buy them from online retailers like Amazon.com (AMZN) or eBay (EBAY) for less. The company is also doing more extensive training for new hires and encouraging promotion of its online store. Early figures show that this strategy is working as online domestic revenue increased 11%. Best Buy also announced it did not receive an offer from founder Richard Schulze by the deadline it had set. The company is also not giving guidance for the first quarter, which might or might not be a good thing.
Despite its recent bounce from its low, Gurus have for the most part been net sellers of Best Buy.
Gurus who have recently sold out or reduced their positions include:
At a forward P/E of 82, I know value investors will not even look at Salesforce. But I bring Salesforce up to show how much Wall Street will reward a company that is growing sales at a fast pace. But underneath that sales growth, the company’s operating margins are abysmal and sometimes negative.
Several Gurus have reduced or sold out of Salesforce as the company has one of the highest valuations in tech. Gurus who have recently sold out or reduced include:
Guru Discussed: George Soros: Current Portfolio, Stock Picks
Wallace Weitz: Current Portfolio, Stock Picks
Stocks Discussed: GRPN, BBY, AMZN, EBAY, CRM,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.