The long run "secular trend" of internet sales is very much against Best Buy. Having said that, since it took a big hit in February, it has been crawling up and a quick scan of the news indicates investor sentiment is good. Plus it pays a little bit of a dividend so you get paid to wait it out. Honestly, my gut reaction is to tell you to get the heck out of it, but if you want to be patient, you may get some of your loss back. I would be out of it before next earnings are released though which I think is August, retailers are looking bad and the numbers could be ugly.

I cannot recommend you to buy or to sell - this is just may personal opinion.

It is crushed in January, but now it is recovering and sentiment looks positive.

Let's say a hypothetical trader bought 100 shares of BBY at $35 per share. Now the BBY stock is traded around $28. If the same trader buys another 100 shares of BBY at $29, then he will have 200 shares and average buying price would be $32 ([35+29]/2). Now, If BBY continues to recover and will go up more than 10% from now (to $32) then this trader will not be any more in losing position.

P.S. Keep in mind that is is usually takes longer time to recover than to crush.

I bought some shares of Best Buy back in 2005 when it was approx $35 a share and failed to follow my gut last December when I could have sold it while it was still up from that. Since then I've held on to it hoping it would eventually rally to the level I bought it at before the company goes the way of companies like K-Mart or Sears.

Is there any real chance this could happen, or would I be better off selling it now so I don't have to take a bigger loss later? I'd really like to have that money in a stock with better prospects long term...