Is Best Buy a Buy? - Argument Against | PowerOptions Web Log
Best Buy (BBY) is a specialty retailer of consumer electronics, home office products, home appliances, and entertainment products in the United States, Canada, and China. One of their competitors, Circuit City, recently declared for bankruptcy and is currently in the process of liquidating their inventory. Most investors expected this event to be a catalyst of Best Buy’s stock; however, the current recession has had a prominent effect on the retail sector causing retail sales to steadily decline. One of the hardest hit areas of the retail sector is the consumer discretionary area. Consumer discretionary items refer to products consumers do not need, but are products they want to buy when they have extra money. During a recession people have very little money that can be spent on discretionary items which is why these companies tend to struggle during recessions. At first glance, Best Buy may look like a cheap stock...
Post to Tumblr