For his Flexible Value portfolio, Covestor model manager Walter Lu aims to maximize total returns in the long term by using a deep value investing approach that looks for liquidations, arbitrage opportunities and special situations. Current top positions include Hollywood Media Corp (HOLL), Celgene Corp (CELGZ) and Aeropostale (ARO).
On March 22, Lu added a position in Best Buy (BBY), the big box electronics retailer. BBY recently announced plans to restructure in select international markets:
Best Buy Co., the world’s leading retailer of consumer electronics, today announced a series of actions intended to enhance growth …
[T]he company plans to restructure its operations in its Best Buy-branded China and Turkey markets. The company also announced plans to improve efficiencies in its U.S. supply chain operations. Altogether, the company estimates that these restructuring actions will result in annual pre-tax net savings of $60 million to $70 million once fully realized in fiscal 2013.
Additionally, the company’s European CEO resigned relatively suddenly in early February:
On January 28, 2011, Jonathan Scott Wheway notified Best Buy Co., Inc. (the “Company”) that he would resign from his position as the Company’s Chief Executive Officer — Best Buy Europe, effective February 1, 2011.
Sources:
“Form 8-K Current Report” Best Buy Inc, 3/21/11. https://www.sec.gov/Archives/edgar/data/764478/000110465911008613/a11-6435_1ex99.htm
“Form 8-K Current Report” Best Buy Inc, 1/28/11. https://www.sec.gov/Archives/edgar/data/764478/000110465911004029/a11-4978_18k.htm
