Bye Bye Best Buy?

Best Buy was down 30% on an earnings warning yesterday (1-16-14)

Holiday sales were down 0.9% with revenue down 2.6% to $11.45Bn, partially saved by a 23.5% rise in on-line sales. We had picked BBY last November at our PSW Las Vegas Live Conference as one of our top picks but we abandoned ship at $42, waiting for the next sale to buy shares again. Is this, then, an opportunity to bargain hunt or should we wait for the ship to hit bottom?

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Discussion from the comment section:

Phil to Mill: "Still don't panic. Those weren't earnings, they were an earnings warning and now you're back on track and, of course, the puts are rollable. All that happened is they didn't make as much money as they thought – they aren't LOSING money, they're not going out of business."

Question to Phil: "Any trade ideas today for BBY?"

Phil: "Too soon. Give the downgrade police a chance to attack and the weekend magazines to put "It's over for Retail" on the cover. Then we'll see. It's not like they have a strong upside catalyst coming up."

Moving on....

Speaking of scams – it's time to WRITE TO YOUR CONGRESSMAN again, as the NYMEX crooks are back in action! Yesterday, the Energy Information Agency reported a draw of 7.7M barrels of crude for the week and this apparent boost in demand (also reflected in Tuesday American Petroleum Institute Report) gave the NYMEX thugs all the ammunition they needed to boost the price of oil from $91.50 back to $94.50 – up over 3% in two days! With Americans consuming 19M barrels a day, a $3 increase costs us $20.8 BILLION per year.

And why is oil up 3% in two days? Not because of US demand; our demand is DOWN 10% from last year and production of oil in this country has never been higher. So, why would the price of oil be higher? BECAUSE THESE CROOKS ARE SHIPPING 2,150,000 BARRELS PER DAY(15.1Mb/week) OUT OF THE COUNTRY! That's right, you have been conned into "Drill Baby Drill" and building pipelines so THEY can send our oil OUT of our country and charge MORE for the ARTIFICIALLY lowered supply.

So write to your Congressman. They are not making us energy independent by sending 15M barrels of petroleum OUT of the country. Of course, if you're Congressman is a House Republican, he's actually the guy that did this to you so, good luck – but at least you can vent.

They are taking YOUR (America's) oil, they are sending it OUT of the country and then telling you there is SHORT SUPPLY locally and driving up prices, despite our own efforts to cut back consumption by 10%. This is costing you MORE than the extension of Unemployment Benefits would cost, 5 TIMES MORE than the amount they have cut from Food Stamps this year.

We shorted oil (/CL) at $94.50 and already this morning it's dipping to $94 and we're making $500 per contract on our Futures trades – that's enough to pay for plenty of extra gas for our Range Rovers – this is why rich people don't give a crap about rising energy prices. Congress doesn't care either because, after all, they are just a bunch of rich folks passing laws to help their rich contributors get richer – enjoy your Corporate Kleptoctracy.