Expecting Improvement in Consumer Electronics Category
Another local company, NAVR, has struggled for some time with continued weakness in this category helping to deliver subpar performance in the company's stock, but that recently changed. Take a look at NAVR's most recent quarterly results and you will see YOY improvement in almost all segments. This should be an indicator of what we can expect from VVTV's upcoming quarterly results. Both companies had previously identified this category as contributing factor to poor results, both companies have had recent management changes. I look for a very much improved performance translating in to a much higher stock price. Time to load the boat, new 52 week high coming soon. All IMHO.
The only thing I expect is that we are ever closer to 2013 and the $15M added savings from distribution that year brings. I am hpeful that KS & Team have not spent that savings! Any topline improvements would be welcomed but CE is still very weak regardless of mgt adds. I say again that we appear to be in same position as Nov 1998....albeit the economy today sucks....but VV has 65M more homes; supposedly much better carriage rates on the horizon; an operationally more sound mgt team....however they lack the vision of the General. Maybe Comcast can provide an added spark with further expansion into their footprint (6M homes) at favorable/make sense carriage. I am not holding my breath however as this company is 'cursed' and KS & Team have failed miserably to remove that curse.
The numbers should not be weak on a comp basis regardeless of industry trends imo. You are correct Gene was far more strategic and a true visionay he was not encumbered or otherwise strengthened either by the lack of academy training at the Q university. We can probably see some stock price benefit going forward unless the senior merchants drop the ball again. Rather than focusing on the fix too much time is spent on fixing the blame.