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

Sell Best Buy, It Has No Pulse

NEW YORK ( TheStreet) -- Take the mixed message from Best Buy (BBY) as a warning to make like a tree and get the heck out of the company's stock.

The cocktail of a stable and, in some areas, improved quarter, year-over-year, mixed with Q4 concern has a Hubert Joly-style mickey slipped in. It's the one I've been red-flagging about all year long even as BBY stock flew in the face of reality.

This is what happens when you put MBA types or retail lifers in charge of a situation that requires dynamic wholesale transformation.

Managers can be fantastic at cleaning up near-term messes by cutting prices, realigning "teams" and slashing expenses. However, cats of this ilk tend not to be the best visionaries. The very thing physical retailers need, they lack and, worse yet, refuse to secure.

Don't scoff at the Intel (INTC) mention in the video. They'll likely do a better job at pop-up stores this holiday season than Microsoft (MSFT) did last year.

From our friends at The Verge:

Intel claims it's "redefining retail" with free coffee each day, free movies on Fridays, and a showcase of PCs, tablets, and other Intel-powered devices at the stores.
The pop-up stores will change physically three times daily, and it appears that Intel has built a dynamic layout to help shift products around in its retail locations. Visitors will also be able to test-drive Intel products at home or recycle used electronics. Visitors won't be able to purchase products in the stores, unlike traditional retailers, as the pop-up stores are being largely used to push Intel's brand.

There's so much here that makes sense that it's best treated in a separate article. But, in short, I think I'd rather have the minds at Intel on my side if I was part of a physical retail operation that has had its head handed to it and, as far as we can tell, will continue to have its head handed to it, by Amazon.com (AMZN).

I mean the idea of not selling anything at a retail location sounds so crazy and unorthodox that it might actually work!

But, because it sounds so absurd, it most likely would -- instantly -- get thrown into the bad idea bin by Best Buy management and its board of directors. That's exactly what happened when some Best Buy employees urged the company to consider seeking partnership with Amazon. The powers that be scoffed.

We'll flesh this BBY-INTC-AMZN retail storyline out over the next few days, weeks and months.

You can find a list of my most recent articles at this link and follow and/or subscribe to my YouTube Channel HERE.

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

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 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

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