New Bill Set to Level the Playing Field for Best Buy Co., Inc. (BBY)

How Does this Help Best Buy?

This new bill directly benefits Best Buy. With Amazon offering tablets, smart phones, computers, and all other electronic devices at a cheaper rate, consumers have used Best Buy to window shop and then to purchase from Amazon. Best Buy, who charges sales tax, simply can not compete with the low prices of Amazon, nor the additional 5%-10% that consumers save by not paying sales tax. This bill would level the playing field for Best Buy, and consumers might be more likely to purchase product while at the electronics retailer. After all, a savings of $10 is not near as attractive as a savings of $70 when you account for sales tax.

Conclusion:

This could be the catalyst that Schulze has been anticipating, therefore it will be interesting to see how it may affect the negotiations between the founder and the company. I think this news makes Best Buy very attractive as a potential investment. The stock is trading with a price/sales of just 0.10 and has a dividend yield of 4%. As a result, it might make a very nice speculative investment within your portfolio.

The article New Bill Set to Level the Playing Field for Best Buy originally appeared on Fool.com and is written by Brian Nichols.

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