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Is BestBuy a Buy? - Argument For | PowerOptions Web Log
Competition is good. It drives innovation and rewards superior effort. In the current tough economy however, lack of competition is better. Best Buy (BBY), the electronics retailer, has skills honed by competition, and now it also has the advantage of watching its strongest competitor go out of business. Circuit City, a lagging specialty retailer, filed for Chapter 11 bankruptcy in November of 2008. The poor retail environment had decimated its sales, but it hoped to stay open and regroup. Inventory build-up probably doomed the company, as margins narrowed and consumers refused to buy. The retailer’s effort to stay afloat proved unsuccessful, and now it is liquidating its assets. On January 16th of this year, it announced it will go under. See what the stock option experts are doing Sign up now for PowerOptionsApplied 30-day risk free trial The remaining direct competitors with Best Buy are relatively weak, and are not...