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Shares of Best Buy (BBY) move up 1.2% premarket with the progression of Richard Schulze's bid to...

Shares of Best Buy (BBY) move up 1.2% premarket with the progression of Richard Schulze's bid to take the firm private still a major focus of investors. Also in the mix is the profitable quarter (I, II) just turned in by Conn's on the back of its double-digit same store sales growth. Did Conn's push the right button by focusing on furniture over lower margin consumer electronics items? Just ask RadioShack (RSH), down 79% YTD.
Comments (4)
  • gguybbycc
    , contributor
    Comments (27) | Send Message
     
    Not sure Conn's exiting of the Whirlpool brand family is a good thing for them.
    3 Dec 2012, 08:36 AM Reply Like
  • t07imothy
    , contributor
    Comments (24) | Send Message
     
    I'm long RSH.
    3 Dec 2012, 10:05 AM Reply Like
  • rsmh
    , contributor
    Comments (28) | Send Message
     
    Conn's proved that sometimes less is more. By ditching items they could not make money on to focus on the product they could, their salespeople did a better job on those products. The same could happen to RadioShack if they just would lose their fascination with smartphones and get back to what they used to be famous for, selling the right accessories to their customers. Oh, by the way, they make NO MONEY on smartphones and LOTS OF MONEY on accessories. It might mean a short term top line decline, but that would be offset by an immediate bottom line increase followed by a long-term business model that works.
    3 Dec 2012, 10:37 AM Reply Like
  • gguybbycc
    , contributor
    Comments (27) | Send Message
     
    These guys are still doing $40MM in a 40,000sf box. The $1000 a sf in sales remains one of the best performances in retail - and this is with half of the Store clearly non-productive. Stock is worth somewhere between $24 and $28 a share.
    4 Dec 2012, 08:37 AM Reply Like
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