Best Buy (BBY) – Too cheap to ignore
They do say that value opportunities are usually found in small, out of the way places. I have found this to be true, but sometimes even large companies we’ve all heard of can hold significant value. Best Buy has a free cash flow yield of roughly 15.8% as of this writing, once its excess cash and investments are taken into account, and free cash flow has been remarkably stable over the last few years. The company is looking to streamline operations and push out its Best Buy Mobile stores, which do only mobile products and services and which are based on a model that seems to be producing positive results in the UK. Hopefully this will offset any loss in revenue from the traditional entertainment and consumer electronics sections.
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