Northern,WI 11/12/2012 (BasicsMedia) — Best Buy takes another step closer to privatizing as they pull a CFO out of retirement to assist in a fair due diligence and change the strategy from a big box retailer to a smaller store approach.
Best Buy (NYSE:BBY) Shares can easily follow the path of 2012 as they trend lower and certainly the largest shareholder ( insert founder) knows better that remaining public where you need to cater to Wall Strreet analysts and pay high Sarbanes Oxley costs. Who in their right mind would want to be public? The value of the shares would be better served going private..and it’s a damn shame. If the US Markets don’t ease regulation soon – so many – companies will go private you will have a disruptive change in the way companies raise capital and investors invest.
Walmart (NYSE:WMT) and other big box players like Bed Bath & Beyond (NASDAQ:BBBY) must be asking themselves what the advantage of remaining a US public company as the retail investors invest’s less in big box names. These shares seemed dominated by hedge funds who make market neutral trades buying one stock and selling another, or Index Funds who have them embedded in their portfolios. The small investor is extinct in many ways. You also have a dividend tax approaching as the Bush tax cuts end making investing in general a study of tax law.
The appointment of McCollam will be disclosed publicly today, the person, who asked not to be named as the announcement isn’t public, said yesterday. McCollam retired from home-goods retailer Williams-Sonoma in March. The Wall Street Journal reported the appointment yesterday.
The electronics chain is revamping operations under new Chief Executive Officer Hubert Joly, who is accelerating the introduction of smaller stores and closing big-box locations. Joly plans to discuss his strategy with analysts at a meeting in New York on Nov. 13.
McCollam attracted praise during her tenure at Williams- Sonoma for reducing store count following an over-expansion, the WSJ said.
Matt Furman, a Best Buy spokesman, didn’t immediately return a call seeking comment. Jim Muehlbauer, Best Buy’s current finance chief, said last month that he would step down from the role.
Best Buy, based in Richfield, Minnesota, posted a $1.2 billion net loss in its latest fiscal year and said Oct. 25 that fiscal third-quarter profit will probably be “significantly” below last year’s results as sales at established stores decline.
Founder Richard Schulze, who resigned as chairman in June, offered to take the company private at $24 to $26 a share two months later. Schulze, 71, later reached an agreement with the company on conducting due diligence on a possible deal.
Disclaimer: We have no position in any stock mentioned here.