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Best Buy; Best-er Sell

Tyler Durden's picture





 

Just two short weeks ago, we noted that Best Buy's 'news' regarding take-overs, take-unders, LBOs, MBOs, or whatever it was - was an opportunity to fade the initial spike. Today's reality-check is cracking the stock down over 7% on heavy volume - as while founder Schulze (who left in June) restates his desire to pursue his proposal, he was 'schocked' that the company has just named a new CEO - signaling the company's desire to keep operating as a going concern as a public company.

 

 


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Mon, 08/20/2012 - 11:38 | Link to Comment diogeneslaertius
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funny or die is for amateurs

Mon, 08/20/2012 - 11:40 | Link to Comment Precious
Precious's picture

The bankruptcy lawyers for "The Good Guys" have lots of experience.

Mon, 08/20/2012 - 12:12 | Link to Comment redpill
redpill's picture

Schulze was recently spotted looking anguished and driving toward the Vincent Thomas Bridge in San Pedro.

Mon, 08/20/2012 - 12:27 | Link to Comment SemperFord
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That was Memphis Raines...

Mon, 08/20/2012 - 14:03 | Link to Comment TruthInSunshine
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Best Buy, Sears Holdings (Sears/Kmart), JC Penney, Rite Aid, Radio Shack & about two dozen other middling-to-sucking retailers are  on literal life support (given debt levels, anemic revenue leading to continuing losses), and there's no coming back from the high debt/decreased earnings choke hold in a rapidly deleveraging world.

There's going to be the largest shakeout in the restaurant business in the history of the restaurant business coming, soon, too, where the fate of many already weak franchises is going to be sealed by yet again surging food costs at a time when they have essentially zero leverage to raise menu prices or take shortcuts to try to increase or even preserve revenue stream.

 

Neither sector can 'go to' the labor portion of their operation to save the day; they've been to that well many, many times, and it's dry

 

This is what happens when any semblance of markets get broken by The Bernank.

Mon, 08/20/2012 - 14:50 | Link to Comment TaxSlave
TaxSlave's picture

True.

 

Mon, 08/20/2012 - 22:34 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

I travel the country.....retail is dead. Malls are empty, space is for lease, strip malls are empty....restaurants are not so dead yet....

I had a sears gift card that I cashed in two weeks ago.....I would recommend doing the same.

Mon, 08/20/2012 - 11:43 | Link to Comment djsmps
djsmps's picture

OT, but it certainly worked before:

Fed Studies Show Damage to Labor Market Is Reversible

Most of the damage inflicted on the U.S. labor market by the recession is reversible, according to Federal Reserve research, leaving open the possibility that additional stimulus will be effective in reducing joblessness.
http://www.bloomberg.com/news/2012-08-20/labor-market-damage-is-reversible-fed-research-shows.html

Mon, 08/20/2012 - 12:13 | Link to Comment Cast Iron Skillet
Cast Iron Skillet's picture

So then at least some of the job loss is irreversible?

Mon, 08/20/2012 - 12:32 | Link to Comment Quinvarius
Quinvarius's picture

They need to admit there is a problem first.  It does not good to shoot for a 2% employmnet uptick based on bad analysis when when need a 10-15% change.

Mon, 08/20/2012 - 12:37 | Link to Comment hbjork1
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Does this mean that people applying for a job are going to have to actually be able to function in the job?

Mon, 08/20/2012 - 13:38 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

<<Does this mean that people applying for a job are going to have to actually be able to function in the job?>>

 

No. What gave you that silly idea?

Mon, 08/20/2012 - 11:42 | Link to Comment Jlmadyson
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Circuit Cityed.

Mon, 08/20/2012 - 13:46 | Link to Comment neidermeyer
neidermeyer's picture

Big Box Electronics are dead ... We had a regional chain shut down here recently (Florida) ... I didn't notice their ad inserts for a few months ,, thought they were saving their budget for Christmas... Their local store is now a Goodwill center..

Mon, 08/20/2012 - 21:02 | Link to Comment StychoKiller
StychoKiller's picture

Hmm, NOW where are TV repairmen gonna find a job?

Mon, 08/20/2012 - 11:45 | Link to Comment Dr. Engali
Dr. Engali's picture

Like anybody is stupid enough to fund a LBO of that size and of a dying business model in this environment. I take that back..a lot of stupid people threw money at Farcebook.

Mon, 08/20/2012 - 12:40 | Link to Comment hbjork1
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Amen!

Morgan  didn't even return the broker's calls.

 

Mon, 08/20/2012 - 12:58 | Link to Comment mofreedom
mofreedom's picture

Does Calpers own any Best Buy.  They're really stupid!

Mon, 08/20/2012 - 11:46 | Link to Comment unclebill
unclebill's picture

Come on it's not that bad......yet

Mon, 08/20/2012 - 11:49 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Where will people go to pick out the shit they want to buy from Amazon if Best Buy goes under?

Mon, 08/20/2012 - 11:59 | Link to Comment azzhatter
azzhatter's picture

I was in a Best Buy (yeah, I was the one) on Saturday. Could have gone bowling in the aisles and not hit anybody.

Mon, 08/20/2012 - 12:10 | Link to Comment netpounder
netpounder's picture

Why does an electronics showroom need a CEO or be publicly traded?

Mon, 08/20/2012 - 12:13 | Link to Comment BLOTTO
BLOTTO's picture

Buy...

Buy More...

Buy More Now...

And be Happy.

-OMM

(THX 1138)

Mon, 08/20/2012 - 12:15 | Link to Comment monopoly
monopoly's picture

Right, Circuit City now morphed into BBY, but Radio Shack goes first, probably after the holidays, then BBY by next summer. For me the stock to buy is AMZN with a PE under 300. They just going to lose a few million next quarter. Earned a copper penny last quarter. Gotta be worth 300. And the icing on the cake....margins compressing. Perfect buy.

Fucking unbelievable. 

Think I will stick with my usual mix of gold, silver, miners.

Mon, 08/20/2012 - 12:21 | Link to Comment spanish inquisition
spanish inquisition's picture

May be Schulze is selling 1% of his holdings. Extra hoops to jump through in MN if you own more than 20%.

http://www.startribune.com/local/166721776.html

Mon, 08/20/2012 - 12:23 | Link to Comment netpounder
netpounder's picture

Unlimited data is the way to go and Sprint provides it.  Electronics are going to be all connected one day and more data/bandwidth will be needed.  Even cell phones nowadays can be turned into hotspots which other WiFi enabled devices will be able to connect to.  Yes, your car too.  Who needs satellite radio or programming, cable tv etc?  Once connected, more data is needed.  It's gold, silver and unlimited data.

Mon, 08/20/2012 - 12:31 | Link to Comment Lost Wages
Lost Wages's picture

Let me know when I can buy one of those Geek Squad VW bugs on the cheap.

Mon, 08/20/2012 - 12:36 | Link to Comment Quinvarius
Quinvarius's picture

Worst 8% unemployment ever.  Sure it is a mere 8%, but it has the effect of almost 30%.  I just can't understand what the multiplier effect is. 

Mon, 08/20/2012 - 13:34 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

I read the CEOs from Netflix, JCPenny< Sears and Best Buy were meeting for lunch to swap managment techniques.

Mon, 08/20/2012 - 14:30 | Link to Comment vbone
vbone's picture

best buy is the best..... at testing free video games in their store, not sure what else they are good for bro

Mon, 08/20/2012 - 14:32 | Link to Comment vbone
vbone's picture

netflix, jcp, sears and best buy, man those are some awesome companies and intellect there lol

Mon, 08/20/2012 - 20:03 | Link to Comment virgilcaine
virgilcaine's picture

BBY = AMZN's physical showroom. 

Mon, 08/20/2012 - 20:44 | Link to Comment Incubus
Incubus's picture

Failure to realize and accomodate for the integration of the internet into reality and every facet of our existence means the death for those businesses who don't, or refuse to see it coming.

 

Sad thing is, we won't be able to escape the histories of our certain web proclivities when our web handles will be just as valid as identifiers of us as our 'legal names.'

 

I believe the eventual state of any hyper-advanced society would be to turn to an entirely virtual existence.  The physical reality is a tether of consequence.  We spend most of our time dreaming up fantasy stories and other fictions as coping mechanisms for the condition that is existence. Your -isms are just programs to get the "hardware" to do what's needed. 

 

 

Tue, 08/21/2012 - 01:19 | Link to Comment StychoKiller
StychoKiller's picture

From the rate we're going, it looks like The Great Implosion™ will occur BEFORE the Singularity.

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