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Best Buy's (BBY) low valuation isn't appealing to many value investors, not when few expect...

Best Buy's (BBY) low valuation isn't appealing to many value investors, not when few expect share losses to online retailers to end, and Brian Dunn's drama-filled resignation leaves major leadership questions. Also of concern is the favoritism being displayed by the company's board to relatives of founder Richard Schulze. (yesterday)
Comments (3)
  • I don't know about Best Buy, although I have shares in it, they are underwater but I am concerned that 'showcasing' will end them. The only way I see them improving is to get customers more involved in the process. Walk, in and go there to play, but the problem is the customers will still walk out that day and purchase it online cheaper? Unless BB can deliver it that day or match prices but I am not so sure of that. Thoughts?
    20 Apr 2012, 04:50 PM Reply Like
  • I sold all shares last week after holding for 6 months. I am convinced BBB will go to $10 before hitting $30 and will become a long-term laggard like Radio Shack. Same store sales are not improving and there are too many capital expenditures required to turn them around, which is probably not possible anyway. Brick and mortar retailers have a huge disadvantage to internet retailers that will just continue to get more intense as more people use smart phones with instant internet access and bar code scanners to instantly price shop. The end result is in the future it will become increasing difficult for consumers to see what they are buying in a store before they buy it. Two things that might save BBY temporarily are (a) if gas prices and shipping costs rise exponentially and/or (b) online retailers are forced to pay state sales tax.
    21 Apr 2012, 02:00 AM Reply Like
  • rrurban,
    Thanks for your thoughts, they are strong.
    2 May 2012, 10:54 PM Reply Like
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