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  • Richard Schulze takes a shot at Best Buy's (BBY) decision to hire turnaround specialist Hubert Joly as its CEO, saying the company needs a proven leadership team with deep retail experience and knowledge of Best Buy. Though it sounds a bit like sour grapes after the company for the most part spurred its ex-founder, Schulze was correct with the part of his statement where he added value is eroding. Best Buy 6.8% lower on the day. [View news story]
    Tomorrow will be the first chance for private equity to get a peek at the BBY's latest financials. If things are bad, shareholders might be screaming for a buyout, but might find that private equity isn't interested.

    http://bit.ly/NgjvLW
    Aug 20 09:21 PM | Likes Like |Link to Comment
  • Hubert Joly Will Strengthen Best Buy's Valuation [View article]
    Or it shows how the recent run up in the price was based solely on speculation about the buyout.

    More likely it was a combination of Schulze's rejection of the Board's offer to conduct due diligence and the naming of Joly.

    The whole thing is a soap opera right now, and Richard Schulze is a loose cannon. I suspect that many investors would prefer to sit on the sidelines than gamble with their money. The swings could go either way, and in a complete worst case scenario Schulze dumps his shares and sends the stock price plummeting.
    Aug 20 09:18 PM | 1 Like Like |Link to Comment
  • Best Buy's Stock Price Tumbles After Naming Its New CEO [View article]
    Revenues will likely be down. Expect lower FCF and and increase in debt.

    http://bit.ly/MVEVy5

    Shareholders might be screaming for a buyout, but if revenue is down and debt is up, private equity might not touch the deal with a ten foot pole.

    http://bit.ly/NgjvLW
    Aug 20 09:09 PM | Likes Like |Link to Comment
  • Best Buy's Board Of Directors Are Killing Shareholder Value [View article]
    Revenues will likely be down. Expect lower FCF and and increase in debt.

    http://bit.ly/MVEVy5

    Shareholders might be screaming for a buyout, but if revenue is down and debt is up, private equity might not touch the deal with a ten foot pole.

    http://bit.ly/NgjvLW

    In a worst case, perfect storm scenario, Schulze would be left with no options but to sell. Hopefully Credit Suisse has been hedging for him - otherwise he could face massive losses.
    Aug 20 09:08 PM | 1 Like Like |Link to Comment
  • Earnings Preview: Best Buy [View article]
    Revenues will likely be down. Expect lower FCF and and increase in debt.

    http://bit.ly/MVEVy5

    Shareholders might be screaming for a buyout, but if revenue is down and debt is up, private equity might not touch the deal with a ten foot pole.

    http://bit.ly/NgjvLW
    Aug 20 09:03 PM | Likes Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    @ Bye Bye Best Buy,

    You'll probably want to find another forum for your updates. Seeking Alpha updates contributors with the number of views each article receives. Unfortunately this article only generates about 3 views a day now.

    I appreciate your visits to the page, but unfortunately, it seems as if you and I are the only ones who still visit this page for the comments.
    Jul 31 11:28 PM | Likes Like |Link to Comment
  • Will RadioShack End Up Like Circuit City? [View article]
    Maybe they could develop web sites to sell mobile phones at an even lower prices?

    Wait - that's already been done...

    http://www.wirefly.com

    I agree with pftettes, and if these retailers don't do anything but try to differentiate on price, they will die. A high cost prime retail space operation is very difficult to subsidize when lower cost models that can sell products and plans at lower prices already exist...
    Jul 28 01:57 AM | Likes Like |Link to Comment
  • RadioShack Plunges: Investors Should Stay Away [View article]
    Earnings loss for RSH was predictable based on the census data for Q2.

    http://seekingalpha.co...
    Jul 25 09:47 PM | Likes Like |Link to Comment
  • Electronics And Appliance Stores Sales Slip In Q2: May Cause Concern For Best Buy/Radio Shack [View article]
    The thunder and lighting on RSH was pretty bad.

    I'm expecting even worse results from BBY. Expect massive stock buybacks (guessing in the $19-$20 range when the company was running scared of a Schulze buyout rumor), significant "one time" restructuring costs for the newer/smaller "Radioshack/Circuit City Express" styled stores, and the overall FCF position of the company to have diminished significantly.
    Jul 25 09:11 PM | Likes Like |Link to Comment
  • Will RadioShack End Up Like Circuit City? [View article]
    Radioshack will go the way of Circuit City. BBY is pushing into RSH's business space. Census data on Q2 made today's 30% drop and the dismal quarter predictable.

    HGG was the canary in the coalmine. APPL's earning miss confirms it. RSH is another victim of the drop in consumer electronics retailers sales last quarter.

    http://seekingalpha.co...
    Jul 25 09:05 PM | Likes Like |Link to Comment
  • Electronics And Appliance Stores Sales Slip In Q2: May Cause Concern For Best Buy/Radio Shack [View article]
    @ Deshy...

    Still think RSH has years? Circuit City went under about 18 months after it was forced to discontinue its dividend...
    Jul 25 09:00 PM | Likes Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    @ Tadpoles_UK

    Glad to hear that you opened a short position in BBY. Last I remembered, you had no position and were considering going short via puts or selling calls.

    The Apple miss spells bad news for BBY's August Q2 earnings call. If you missed it, another one of my articles (link below) discussed how bad Q2 might be for BBY. Think HGG's 30% drop, but potentially worse. The Apple news only confirms that the Census data regarding consumer electronics was spot on.

    http://bit.ly/MVEVy5

    I'm not sure whether current upper management won't bankrupt the company faster with their payouts to each other. The recent law firm investigation into the company's decision to award $10 million to execs simply to "do nothing but stick around" seems to indicate that the insiders are looking to milk the company for all its worth before they drive the company into bankruptcy.

    If the employees do unionize I don't think anyone would blame them since it seems the only option available to them to protect themselves. From an investment prospective for the company stock price, unionizing would add yet another poison pill for a private equity firm to have to deal with (as if the current attempts by existing management and the board to flush as much cash down the toilet were not enough).

    It seems like upper management is looking to "grab as much as they can before the building burns down." I wouldn't be surprised if the employees didn't unionize to protect their own interests before its too late.

    Frankly I'm shocked that Shulze hasn't sold like Einhorn. Then again, if the employees unionize, then I'm not what options will be left on the table for Schulze since I couldn't imagine any private equity firm or bank would want to touch the company at that point. If that happens, expect your short position to become very very profitable...
    Jul 24 11:47 PM | 3 Likes Like |Link to Comment
  • Electronics And Appliance Stores Sales Slip In Q2: May Cause Concern For Best Buy/Radio Shack [View article]
    @ Deshy,

    18 months is not an insignificant amount of time. If AMZN was the only problem facing the company, I'd agree that RSH has years.

    Between BBY trying to enter into the RSH market space (i.e. smaller store format with mobile sales), and competition from discount/other/warehouse brick and mortar retailers (WMT, TGT, and COST) I think RSH has a very tough road ahead in the short term.

    Not sure if yearly revenues will stay at the figures that will keep the company sustainable. Of course as always, time will tell.

    Thanks for the read and for the comment.
    Jul 20 12:37 AM | Likes Like |Link to Comment
  • The National Retail Federation estimates back-to-school spending will increase 14% this year, a mark that would represent the best pace since the survey began in 2003. Nearly 60% of parents will invest in some sort of electronics, up considerably from last year's level of electronics spending. On watch for a boost: WMT, TGT, BBY, ODP, OMX, SPLS, RSH[View news story]
    Gotta love it when the Retail Federation starts pumping the companies that make up it membership.

    Almost as good as when someone shorting a stock speaks ill of a company (*tongue in cheek).

    Interestingly the report referenced in this "market current" made it clear that the role of the internet was increasing for purchases, but AMZN was not among the stocks listed (I have no position in AMZN).

    Excerpt is below.

    Economy still top of mind; Internet playing big role in how consumers shop for school items

    After several years of uncertainty it seems the economy is still impacting how Americans shop. From shopping for sales more often to contemplating their children’s athletic and academic activities, this year 84.8 percent of consumers with school-aged children say the economy will impact their spending plans in some way. Specifically, more people plan to shop for sales more often (51.1% vs. 50.0% last year) and cut back on their children’s extracurricular activities (11.0% vs. 10.2% last year.)
    Savvy shoppers looking to save some money will shop online more often (17.9% vs. 15.3% last year) and comparison shop online (32.1% vs. 29.8% last year.)
    Jul 20 12:01 AM | Likes Like |Link to Comment
  • A Look At Einhorn's Best Buy Position [View article]
    @ IV

    Expect to see another round of "one time" restructuring charges this upcoming Q2, which are likely to encompass all sorts of costs as well. Expect to also see that cash flow position go down.

    I can't tell if the current management team really thinks the ideas they are coming up with makes sense, or if they are trying to do everything they can think of to make the company less attractive from a buyout perspective...
    Jul 19 11:54 PM | Likes Like |Link to Comment
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