Best Buy Co., Inc. (BBY)

Most retail stocks are projecting a v shape recovery in the economy and valuations are not cheap by historical levels. Best Buy in particular will also have a tough time retaining it's growth as it's brick and mortar concept is being attacked.

Amazon + Possible Depression = Serious Problems
They will go the way of:
The Wiz
Circuit City
Sam Goody

Their Buys are just not that good.

overated, will be pressured by Walmart price cuts, sales on Amazon and direct from manufacturers, will see trimmer margins, steady fixed costs. Sales bubble from switch to flat screen TVs will taper down as consumers have made switch or will get from other retail sources.

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I tend to go to Best buy to look at what's available and check out their prices. Then I go online to check internet retailers that I have used in the past and have offered good prices and service. Usually I can find a better deal than at Best Buy plus no added tax and sometimes low cost shipping. With online reviews, such as Amazon and others, its frequently easier to sort between competing products. So even though Circuit City is gone, their real competition has not gone away.

People don't need the crap BBY sells, and no one has much money left. Therefore BBY is going to be in the tank for some years to come.

Behind all the so-called "positive" news lies corporate cost cuts, elevated jobless rates, wage deflation and continued pressure on personal consumption expenditures.

Trust me, this company is going belly-up. Junk Junk nothing but junk For Sale! Yesterday's Consumer is dead (or close to it)

Tommorow's citizens will demand and get more individualized quality, durability and beauty from electronic and other consumer investments.

And Best Buy's not gonna be there.

Big box retailer where the consumer will continue cutting back...

Recession strapped consumers are still keeping their wallets closed.

Market is trading with unrealistic optimism about consumer recovery. Had a poor reaction to earnings last month, and chart is weakening.

I just don't think this type of brick and mortar computer store will have much of a future. Online on tigerdirect or newegg you can buy much better hardware at much better prices. Microcenter doesn't have very many locations but in general has more savvy employees and hence they give better advice. The geek squad stuff is not a good thing either since it tends to be sales people pushing overpriced support that you probably don't need. The more people know about computers the less they will shop at best buy.

Tightening consumer spending over the next year, entertainment will suffer.

Ready for nosedive and worst time ahead. Stores are emptied.

Short, Short, Short.

BBY is not worth 40 plain and simple. Current P/E is 17 (high for a bear market environment). 40 is what BBY was pricing in 2007 when they were earning record profits.

Earnings have contracted...what's the justification for the price being the same? Yes, CC has lost business, that benefits BBY, but a receeding tide sinks all boats...some more quickly than others.

Just for example...BBY earned less last FY than in FY 2007 (2 year ago earnings...).

The retail game has changed. Brick and Mortar stores are becoming dinosaurs. Too much land/building risk (i.e. values decreasing and having to be written off books), Amazons model is the future.

And not only that, American consumers have permenantly changed. Just like the depression, Americans are rediscovering saving (rate now at 5% and headed higher). That means less discretioanry purchases are at the top of the list. BBY is huge on consumer financing which is contracting.

My main disagreement is the Price...it's doubled since it bottomed and that's just not sustainable in a volatile market. I thought BBY was fairly priced at 20-25 range. Consumers aren't buying more...there's no justification for the price, BBY has not produced a year-over-year increase in earnings for the last 3 quarters...by all signs earnings are not rebounding.

The boost provided by Circuit City's demise is not as large as people anticipated. Also, the restructuring of senior sales associate's pay is hauntinglyfamiliar to what Circuit City did, which killed morale and the company. Best Buy needs to pay close attention to this and make changes immediately if they start going down the same path.

While Best Buy has a semi-monopoly for pure electronic stores, and it has benefited recently, these goods will take a hit over the summer. Good stock but no immediate upside.

Overpriced and underused. I can live with my current canopener just fine.

Stock overbought, overpriced electronics and accessories, online competition, craigslist.