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 Get Too Excited About Best Buy

Stock quotes in this article: BBY, BBRY, RSH, JCP, AMZN

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 Amazon.com (AMZN) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,766.43 -38.28 -0.23%
S&P 500 1,937.81 -8.35 -0.43%
NASDAQ 4,407.2870 -14.7980 -0.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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