Agreed. I usually just assume that people are doing their homework when making
an investment, since if you don’t you are basically playing the lottery, which
is stupid in my opinion. So we will leave it at this, if you have done the work
and have been waiting for an attractive price on BBY, this could be a good
buying opportunity. If you don’t have a reasonable basis for making the
investment, do some research and weigh the pros and cons before pulling the
trigger and never make a decision based solely on a price drop and a big name.

david,

well thats perhaps where our communication got fouled up. i
wasnt--initially--responding to your comments but the question that iwmm asked.

'anyone think BBY is a buy ***TODAY***.

youve already done the work, thats fantastic and im sure you'd have the
conviction to hold on if it dropped another 12%. however, its my experience that
if someone has to ask if its a buy on an exact day...well then they havent done
the work for themselves.

so though it may have sound fundamentals, and you may like its prospects as a
part of a long term portfolio, i dont think someone who hasnt done your level of
work on it should jump in after a price drop reacting to earnings.

if people havent done the work for themselves, its my opinion that they wont
have the conviction to hold throughout a 10-20% decline. fear, ego, and panic
typically takes over.

I never said jump in now. I didn’t even consider the price movement while
looking at BBY, I just like the company. However, if you like a company for a
long term investment and all of a sudden it drops in price by 6%, that’s a
good opportunity to get in at a better price. That isn’t being overly eager
if you have done the work.

david,

well no one is talking about efficient markets either. and certainly there is a
lot of noise, momentum, emotions etc. that exist in day to day, even month to
month price action.

but this is follow an earnings announcement. thats not noise. thats market
players reacting (correctly or not) to data about the company. could they be
wrong? absolutely. how can we tell?

*shrugs shoulders*

the reaction shouldnt be what convinces you its not worth a 'long term hold',
but it should give one pause. if youre gonna be in it for years, why wouldnt one
wait a week till the dust settles? whats the hurry?

I don't believe the market is "efficient". However, I do believe the
key to success is to lose the least amount of money when you are wrong.

No one is claiming anyone should make an investment without lots and lots due
diligence. However, for a stock that you are planning to go long in and hold you
shouldn't be swayed by a drop like that. The market has so much noise messing
with day to day prices that those movements almost meaningless. This argument
gets into lots of theory with the efficient market hypothesis. I personally
don't think that markets are efficient; if they were we should all just be
indexing. This is an unwinnable debate and really just comes down to personal
opinions. In my opinion, a big drop doesn’t necessarily mean that the new
price is correct. The market is inherently flawed because it is based on human
actions.

when the stock recovers, or any fundamental analysis, is a guess. What is
indisputable here? The price and volume action. It's an avoid.

no! my god, why dont people respect the market? if news comes out, and a stock
gaps down and gets slammed, thats code for big funds are selling!

let it breathe, its just the hight of arrogance to dive right in without knowing
why others are selling or waiting till they are done. perhaps it was a poor way
of beating earnings. ya know they have fancy accounting ways of doing this. did
you REALLY drill into the numbers, or just check headline numbers?

The drop in BBY seems excessive to me. I like it as a long term investment. It
may be a bit choppy until we really turn a corner demand wise. This big drop
will correct shortly I think, so a trade could also be profitable. Our model
gives BBY a strong hold, nearly a buy.