The logic and lack of facts here is mind boggling with longs...:" BBY has same cost of goods sold as online " "15 days to return goods now, no big deal"..", "Now, that BBY is price matching, should be fine" "Online taxation will level playing field"..All the longs are focusing on is boxes and bows, T.V's and Appliances, with LITTLE MARGIN. Now with a restrictive return policy. In addition, Google is rumored to build their own stand alone stores and pull out of BBY. Further sq. ft DEAD.
You can't seem to wrap yourselves around the fact that most other products are DEAD and the high cost of running a big box electronics store is a killer without the other moving. Do you really think you're going to find 80% other items in the store that is competitive with online prices? NO. The brands are different and thus, NO PRICE MATCH. Even their own website sells different brands found in their own stores.
The full Q numbers and Schulze deadline approaches. I see trouble. The isles in big box electronics getting wider. Many products delivered to your PC or door..music, DVD's, software are gaining strength in ecommerce and not at stores. The future is here. Been wrong before, but don't think now. : ).
I've said all along Holly, the flaw in your argument (since Jan 11) is the assumption that on Feb. 28 the sales numbers/cash flow/profits will be greeted negatively by the market. Yet since Jan 11, the market has repriced the stock as a company that is apparently not going out of business any time soon. The decline has ebbed (you believe temporarily). I think the price matching/return policy was a way of publicly acknowledging that mngmt is willing to combat the showrooming effect and that they are actively planning (see downsizing efforts) to restructure things and compete and remain profitable going forward. Yes there was a big mess, management infighting etc. and the stock was spanked to the point of the market saying 'they're dead'. Now the market has said, they're sick but there is a pulse.
I should add that I will be out of this trade fairly soon and not be waiting for $30 pps or results from the second quarter. You, on the other hand I know are willing to wait for sub-10 as you see it heading in the future.......not/never an investment for me, just one heckuva trade so far. Cheers, BG