Falling Flat-Screen Prices Flattening Best Buy, Circuit City Stocks Ahead of Earnings
On Wednesday, earnings from Best Buy (BBY) and Circuit City (CC) hit The Street. Although their flat screen TV’s are unquestionably sharp looking - price wars have left their profit picture fuzzy at best. Is it time to buy the flat screen, but return the stock?
Jeff Macke says there’s a lot of bad news already in these stocks. He recommends investors look at Best Buys April 50’s options contracts (BBY-DJ) at one dollar.
Dylan Ratigan explains this trade involves paying one dollar on a bet that the stock will go above $50 (and ideally $51 a share) before the third Friday in April.
Jeff adds that investors should probably just stay away from Circuit City
On MAR 30, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Bolling Owns Gold, Silver, Natural Gas, Is Short Crude Oil Strazzini Owns (MO), (SNDK), (STM) Macke owns (SWY)