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A building is reflected in the glass of a Best Buy store in New York in this August 21, 2012, file photo. Best Buy Co Inc said on August 27, 2012, it agreed to let founder Richard Schulze conduct due diligence and form an investment group with private equity sponsors as he tries to take the retailer private.
A building is reflected in the glass of a Best Buy store in New York in this August 21, 2012, file photo. Best Buy Co Inc said on August 27, 2012, it agreed to let founder Richard Schulze conduct due diligence and form an investment group with private equity sponsors as he tries to take the retailer private.
(Brendan McDermid/Reuters)

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Best Buy founder hunts for a bargain

 — Financial Times

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Best Buy has a market capitalisation of $4.1-billion (U.S.), and management expects the company to generate $850-million in free cash flow this year. So, if the U.S. consumer electronics retailer were to perform as expected and simply to pay out the cash to investors, they would receive a 21 per cent dividend yield. You can buy 10-year debt from the Greek government and earn only 13 per cent. That seems right. Both are in trouble, but Germany and France may step in to save Greece. Best Buy will not be bailed out by Walmart and Amazon.