Short Best Buy Co., Inc. (BBY)?

Those sales have been a large contributor to Best Buy’s free cash flow, and most people forget that it’s a significant part of each lost sale. Which brings me to yet another worry: Without a large cash flow contributor, how long is it before the dividend is canceled? Best Buy Co., Inc. (NYSE:BBY)could already use the cash elsewhere to help fund its attempted turnaround, seemingly shortening the life of its current dividend.

Bottom line
Best Buy is in a tough spot, and it seems the digital age is becoming rich with companies like Amazon.com, Inc. (NASDAQ:AMZN) that are producing valuable products or content and finding their own way to create profits rather than solely depending on retailers like Best Buy. While Joly is taking the right steps for a turnaround, I don’t believe the future marketplace has a large enough home for Best Buy with so much competition from all angles.

Let’s not forget that the company has zero earnings on decreasing revenue, ballooning debt, and little cash flow — there isn’t much I like right now. I’m not shorting anything in this current market rally, but when I do, Best Buy Co., Inc. (NYSE:BBY) is at the top of my list. That’s just my take on it — what’s yours? If you’re confident in a Best Buy turnaround, tell me why in the comments box below.

Fool contributor Daniel Miller owns shares of Apple and Ford. The Motley Fool recommends and owns shares of Amazon.com, Apple, and Ford. It also owns shares of Microsoft and RadioShack.

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