This Day On The Street
Continue to site
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

If you want to play temporary pops, false optimism and dead cat bounces on a BBY, more power to you. If you time it right and make money, chest bumps and fist pumps all around. But, if you think these fits and starts mean anything about the long-term prospects of Best Buy (or JCPenney when it pops), you're as delusional as Ron Johnson.

Best Buy has always chased its own tail. Unless there's some dramatic managerial and cultural change at the company, it will always chase its own tail.

Best Buy, JCP and other retail skunks remind me of terrestrial radio (AM/FM). They do nothing proactive. No innovation. No there there. Rather, it's all about some other technology, some other strategy, some other company's shrewd, bold or competitive move forcing their hand. But, it takes way too long for that hand to get forced.

Jeff Bezos at (AMZN - Get Report) saw the future of retail more than a decade ago. Just like Joe Kennedy, the CEO at Pandora (P), according to the company's co-founder Tim Westergren, planted the seed to disrupt radio roughly ten years ago. These guys pioneered. And everybody else followed slowly, but not surely.

Old-guard retail. Traditional radio. There's little difference between the two from cultural standpoints. And that's why, while they might persist and subsist at unexciting levels, most will never break free from mediocrity and irrelevancy. The culture of obviousness holds them back.

What do they need to do to bust out? It starts with no real specific direct action. It's more broad. More cultural. Eschew being retailers and radio people; fire those not willing and able to do this and hire people from the industries of today. People capable of actually disrupting and transforming.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 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
RSH $0.31 12.76%
AMZN $518.01 0.00%
BBY $35.97 0.00%
BBRY $7.37 0.00%
JCP $8.94 0.00%


Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs