This Day On The Street
Continue to site
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

Don't Get Too Excited About Best Buy

NEW YORK ( TheStreet) -- It amazes me that anybody with a time horizon of more than a few days or weeks pays attention to (A) politics or (B) Best Buy (BBY - Get Report) quarterly earnings.

And I mean a time horizon on anything -- investing, attention span, life.

If you "trade" -- and you probably shouldn't be doing that unless you have a true statistical edge -- I guess what happens in Washington or in a quarter or two matters. (Then again, if you have an "edge" it has nothing to do with real-life events. It's all about the chart.)

A view beyond the previous and next three months -- one that takes the long-term prospects, strategic-competitive position and vision of a company into account -- renders some stocks virtually untouchable until the dust settles.

You can certainly make money trading pops in names such as BBY, Research in Motion (BBRY - Get Report) and RadioShack (RSH), but, if you get tempted by high risk/big reward too often, there's a good chance you'll blow up your account.

Of course, most people do, and probably should, reserve a portion of their portfolio to speculate on turnarounds and perceived value plays. Just not a good core strategy for most investors.

That's why I chide Wall Street analysts who beat the drum for broken companies on a good quarter or two. That's what we saw last week with Best Buy.

As I articulated ahead of earnings, even if they fail on different timelines, the culture of obviousness will lead Best Buy and JCPenney (JCP - Get Report) to horrible deaths.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
AMZN $431.42 1.40%
BBRY $10.11 -1.84%
BBY $34.36 1.36%
JCP $8.60 -1.49%
RSH $0.31 12.76%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs