Here we go again. The Wall Street cheerleaders and the CNBC bubble headed bimbos are actaully cheering the absolutely horrible results of Best Buy. They should change their name to Worst Buy. The Wall Street scumbags had driven the stock higher when the founder said he was going to take Best Buy over and take it private. Well, he backed out last night. I wonder why?
Here is a link to the terrible 4th quarter results:
Here is my assessment of the dying retailer:
- Their 4th quarter revenue was flat, even with an entire extra week. That means their sales really fell 7.7%.
- Comparable store sales declined and gross margins plunged.
- They lost $409 million in the quarter that is supposed to be the best for retailers and they’ve lost $1.6 BILLION in the last two years.
- They already warned that the 1st quarter of 2013 will be a disaster, which means hundreds of millions in losses.
- Their cashflow from operations DECLINED by $1.6 BILLION in one year.
This is a company in freefall. Their bricks and mortar concept is dying. Amazon and other on-line avenues are cleaning their clock. The Geek Squad will not save them. The founder, Dick Shulze, walked away from his buyout offer. Only an idiot would want to buy this future footnote in retail history. Of course Wall Street thinks it’s the best time to buy. Have they ever been wrong?