Rudeman

Rumors of Best Buy's Demise Are Greatly Exaggerated

Terrible analysis.

January and October are not the same month so they should not be compared. Hell, why not pick July and October?

Less people shopping typically equates to higher average orders. If only one person shopped all month and he bought a $1000 plasma they would have a great average order for that month. Less people shopping equals less gross sales. That is never good.

Here's my quick take. Analyst will expect Best Buy to gain the marketshare that Circuit City is giving up by closing stores. Sadly many of Circuit City shoppers were/are Wal Mart shoppers. Not being able to grow sales (enough) from the demise of Circuit City will cause analysis to hammer Best Buy stock down.

For reference review what happened to the Toys store industry as Toys R Us killed their competition - Lionel Playworld and Child World.

I do think Best Buy management is smart and in the end they will bounce back -- when the economy does.