Other large retailers like Borders Group Inc. have also filed bankruptcy due to the onslaught of online retail,” observes Cekerevac.
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New York, NY (PRWEB) July 04, 2012
According to Sasha Cekerevac, contributor to Profit Confidential, the future is looking increasingly bleak for one of the largest electronic retailers in the world: Best Buy Co., Inc. Online retailers already pose a hurdle for stores. However, this hurdle is growing, as consumers prefer to touch the product in the store but purchase the goods at home.
In the article “What’s the Future for Best Buy?,” Cekerevac notes that a great example of these difficulties is when Best Buy’s direct competition, Circuit City, filed for bankruptcy; yet Best Buy was still unable to significantly increase corporate earnings.
“Other large retailers like Borders Group Inc. have also filed bankruptcy due to the onslaught of online retail,” observes Cekerevac.
While Best Buy is announcing the closure of 50 stores and building smaller-format operations, Cekerevac believes it’s not enough of a shift to dramatically impact corporate earnings.
Cekerevac warns not buy the stock at this point. He believes more positive technical indications are needed, as well as a solid plan that can ensure this business will be viable for the future.
“No one can perfectly catch the ultimate top or bottom in a stock, but you can lose a lot of money trying,” says Cekerevac. “Wait for management to be finalized and investor sentiment to start to turn before making a bullish call.”
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Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.