Buy the Rumor, Sell Best Buy (John Mugarian's Dynamic Growth)

Buy the Rumor, Sell Best Buy

I've decided to go ahead and sell Best Buy (BBY) from the IA portfolio. At a current price of $50.46, BBY has given the portfolio a gain of 17.07% from our initial purchase of $43.10 in September.

As I look at the chart, BBY usually peaks around the first week of December, and sells off into its earnings announcement. Given that the economy will soften in 2006, I am satisfied with the current return (Pigs get slaughtered).

In addition, video game maker, Electronic Arts (ERTS) said that sales for the first week of December were weak. This follows the weakness in sales for November.

Posted by John Mugarian on December 9, 2005 2:34 PM | Permalink

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