Best Buy is around $30 per stock right now! Well if that is the case then I should save my money and see where they go.
amazon is in a bit of a struggle right now but once they regain their momentum I don't think that Best Buy will be able to keep up. But right now it is stable. They are taking correct measures to stay in competition.
I have always believed that RadioShack has a bad business model. It hires college graduates to sell products that they are uninterested in at an inflated price for the customer. Their prices are ridiculous and they cannot compete with larger chain brands such as Best Buy.
I am also pretty bearish overall on these and most other retailers outside of the food chains and discount retailers like Walmart and the dollar stores. I've been short JCP pretty big since it was in the upper teens, and I have a smaller put position on Sears as well.
Microsoft will probably be the only stock still standing from now and then. So has Microsoft or Apple been stable or did they take any hits?
I could see Best Buy holding on for quite some time in the market. The company is attempting to adapt to changing retail environments, but RadioShack is absolute toast if you ask me. I think we've all known that for quite some time, though. I don't think the company itself even believed that things would end well. We'll find out soon enough.
JCP made a pretty huge gamble with the overall change in image...when that news came out, I was interested to see what happened. I don't know how long they are for this earth either. Though Radio Shack isn't gone, it is on its last, and maybe a few others like JCP.
That's why I never plan on purchasing stock in companies that are dying or in industries that are dying. However, I personally don't think its good for the creditors to do this. The companies still have the potential to get back on their feet if they have time to grow back - I think that brick and mortar stores still have a lot of potential.
One problem I find is that many shoppers just look in store and then go buy online for x%-xx% lower. The problem with this is that eventually few stores will exist to exhibit electronics. I suppose the likes of Walmart and such aren't going anywhere fast and they sell many electronics, but it does pose problems.
