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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To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
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.