Brian Twomey
Brian's Investment
Best Buy, the electronics retail chain trades on the New York Stock Exchange as BBY. The 3 letters in the symbol is the indication to a New York Stock Exchange stock as opposed to 4 letters for Nasdaq, Over the Counter, and Pink Sheet stocks.
Not certain how Pink Sheet stocks are addressed in the modern-day however those stocks fail to qualify for Nasdaq registration and are generally start-up companies, highly speculative, and low price stocks traded in Over the Counter Market. The speculative word is Penny Stocks and cheaply priced, under $5.
Very few Pink sheet stocks survive. If memory serves, Big Blue IBM once began and traded in the Pink Sheets yet this is a rare occasion as many companies will fail before one success story materializes.
Prices in Nasdaq and Over the Counter markets are negotiated by Bid/ Ask spreads as opposed to the organized and orderly markets of the New York Stock Exchange. Bid/Ask spreads can change quickly and explains why stock traders' best chance for success is to trade only New York Stock Exchange Stocks.
Best Buy opened this week at 114.93 and Thursday reports EPS or Earnings Per Share. The PE or Price/ Earnings ratio current reports 16.80 and 37.11 for the S&P's and 25.56 one year ago. The S&P at 37 PE is exorbitantly high and ready for a deep fall.
The time to buy Best Buy was March 2020 when the PE ratio was 10.38 and Best Buy stock traded at 98.24. Today, 16 points represented profit.
The Rule for stock trading is long low PE ratio stocks and short high PE Ratios. Best Buy at 16.80 is either high or rangebound but not a trend. The question for Thursday is can price match to earnings at 16.80.
Last quarter, Best Buy achieved PE Ratio highs at 17.77 on April 21 when Best Buy stock traded 121.56 then dropped to 117.47.
Ex-dividend for Best Buy was March 17. Next dividend date should report in June. Ex-Dividend dates are not only profitable but profits come quickly by trading Dividend plays.
Long Best Buy lows at 114.35 and highs at 115.51. Long the lows and short the highs. Due to the S&P PE ratio at 37 and Best Buy at 16.80, the suggested strategy for Best Buy is short.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
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