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

Sell Best Buy, It Has No Pulse

NEW YORK ( TheStreet) -- Take the mixed message from Best Buy (BBY - Get Report) 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 - Get Report) 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 (AMZN - Get Report).

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.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $659.59 0.00%
BBY $32.08 0.00%
INTC $30.28 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs