This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Don't Let Best Buy Distract You

Stocks in this article: BBY AMZN WMT

NEW YORK (TheStreet) -- Once a company stops delivering, it tries to live by its wits.

For example, it times big announcements to when earnings are on deck. Many in the media will pay attention to the announcement, making it a tool of distraction for the earnings.

With this in mind, let's look at the two ways to cover the news that Best Buy (BBY - Get Report) plans to name Hubert Joly, the chief executive of hotel and restaurant company Carlson, as its next CEO.

Near the top, The New York Times reminds us in no uncertain terms: "Best Buy is scheduled to report earnings on Tuesday, when it is expected to provide further detail on its own turnaround plans."

The Wall Street Journal, by contrast, provides absolutely no reminder that Best Buy, in the process of getting its clock cleaned by Amazon.com (AMZN - Get Report) and Wal-Mart (WMT - Get Report), will be reporting earnings tomorrow.

It looks to be a brutal quarter. Analysts expect earnings of about 31 cents a share, down from 47 cents in last year's second quarter. Worse, analysts have trimmed their numbers considerably in recent weeks and months. If Best Buy still disappoints, look out below.

Though The Times did well to mention the coming earnings, it didn't go far enough. Joly's appointment news breaking on Monday means that Best Buy has bought itself a touch of time for Tuesday's earnings. No matter how bad earnings are -- and they'll be bad -- Best Buy can point to the appointment as evidence that a turnaround plan has been initiated, but it won't have to be too specific about it. After all, Joly was just appointed.

Meanwhile, the messy involvement of Richard Schulze, founder and top stockholder, who is agitating to bid for control of the company, will also be relegated to an afterthought.

The timing of the Joly announcement, coming a day before earnings, is designed to help make you forget the bad numbers and all the attendant drama. I sure looks like the media has already forgotten.

But numbers and drama always rear back to drive stock prices, so make sure that you, unlike The Wall Street Journal, pay attention.

At the time of publication, Fuchs had no positions in any of the stocks mentioned in this column.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Marek Fuchs was a stockbroker for Shearson Lehman Brothers and a money manager before becoming a journalist who wrote The New York Times' "County Lines" column for six years. He also did back-up beat coverage of The New York Knicks for the paper's Sports section for two seasons and covered other professional and collegiate sports. He has contributed frequently to many of the Times' other sections, including National, Metro, Escapes, Style, Real Estate, Arts & Leisure, Travel, Money & Business, Circuits and the Op-Ed Page.

For his "Business Press Maven" column on how business and finance are covered by the media, Fuchs was named best business journalist critic in the nation by the Talking Biz website at The University of North Carolina School of Journalism and Mass Communication. Fuchs is a frequent speaker on the business media, in venues ranging from National Public Radio to the annual conference of the Society of American Business Editors and Writers.

Fuchs appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs