The more insiders own the more likely the report will “look” better
Best Buy is my favorite place to buy (next to the internet) but I just don’t see shopping carts of product any more, just little bags and no waiting. A newer store I went into had far more employees then customers, an employee said “people just don’t seem to be able to find us.” People I ask say Costco and Wall Mart are much cheaper on big Items, and Wall Mart is now the place to go for dvds, Game Works for games and now Radio Shack will be doing the big name games. Although Best Buy sells Apple I understand Apple doesn’t do as well in the warehouse setting. Where I buy groceries they have a vending machine that sells Ipods. It seems unlikely Best Buy is selling as much per store as they did in their hay day.
I like Best Buy but come on who wrote the financial report. Look at Circuit City, they have been the same old store for years, not as cool as Best Buy but they have hung in there. With the equity in homes already spent over the last 4 years people just aren’t spending like they use to. Circuit City’s report reflects that. CC’s insiders only own 1.08% of their stocks and their report came out reflecting the new trend. BBY’s insiders own 16.92% (80mil shares) of their stock. That is 80 million dollars for each dollar the share moves.
I’m not suggesting that they make more money from investors then they do selling product or that they would put off some of their expenses to show more profit, I’m just saying it’s curious.