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SPX Corporation Message Board

StockSentinel 6 posts  |  Last Activity: Aug 27, 2014 6:25 PM Member since: Jan 20, 1998
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  • Consumer electronic prices on average continued to decline, and no new must have high dollar devices have shown up lately. The hope is when 4K come more into the price range of the average consume it will drive new wave of big screen TV upgrading. Which I suspect will happen within the next 18 months, and once it starts watch BBY revenues zoom.

  • WM is says consumers are choosing local markets over their suppercenters for convenance, but the real issue is the largest part of WM sales, groceries, has become a lot more competitive in the last few years. Driven by the mass consolidation in the grocery market sector in the last several years that WM it's self caused by using it's superior size to cut better deals and give lower grocery prices to attract customers away from traditional grocery only stores.

    Well that day is over, the difference between traditional grocery store and WM are almost none existent when you take advantage of the weekly sales most grocers offer, especially meat sales. Also a lot of those suppercenter stores are getting old and dated, and will soon need massive influxes of money to keep them up to date, what will MW do? Hard to say, maybe close a lot of them, and pray the smaller stores pick up the slack, spend a ton of money to replace them with new smaller stores. Regardless WM is going to have to take a big hit for building so many of those supercenters in the long run one way or another.

    Sentiment: Strong Sell

  • stocksentinel stocksentinel Jul 30, 2014 4:05 PM Flag

    "The products BBY sells represent a tiny portion of AMZN's " Totally wrong, electronics and other goods is the largest part of AMZN revinue, and just the US sales of eledtronics and other goods accounts for almost half of AMZN total world wide income, and when world wide sales are taken in to accounts about 2/3rds of all AMZN sales. Even if BBY is assumed to make 0 impact to AMZN outside the US, if BBY puts a resonable dent in AMZN sales it hit AMZN hard. AMZN has been betting big time it would continue to increase sales in this catagory by taking market share from companies like BBY, but with agresssive cost cutting to keep prices low, BBY is starting to looks ike they have broken the trend when the went to price matching. Why go home and order it on AMZN when you can take it home from BBY for the same price and have it now?

    Sentiment: Strong Sell

  • BBY has shown that a B&M store can be competitive with an online giant like AMZN, especially since it now has to collect sales tax in the majority of states. Now one has to question if by forcing BBY to compete H2H with them, has AMZN created its worst nightmare? A B&M store that lean and mean enough that has all the advantages of buying online, and none of the disadvantages. Now they are off on a big spending spree to become more like a B&M store so they can provide same day gratification like a B&M store, only question is, when they are done will they have and cost advantages over well run B&M stores?

    Sentiment: Buy

  • Reply to

    Is the end near for WMT?

    by stocksentinel Jun 24, 2014 6:05 PM
    stocksentinel stocksentinel Jun 25, 2014 6:22 PM Flag

    The opening of new stores has been keeping things looking like they are still progressing in a positive way at WMT, but the fact is they are shifting focus from super stores to smaller mostly food stores shows to me they have about reached the saturation point of super stores. At the same time the shear number of super stores that will need expensive makeovers soon is staggering. The one closest to me about 8 years old is starting to look ragged and dated, and despite them building about 2K homes in a mile of the it, the store doesn't seem to have benefited from it. As several competitors have recently opened new stores in the area that are nicer in all regards with better service and competitive prices to WMT.

    The fact is WMT is not going to build it's self out of the issue of having remodel thousands huge super stores around the world, and the same time it now has to compete against competition that was forged out of the remnants of the many companies that WMT steamrolled over for many years, who have consolidated into lean efficient companies that now have the leverage needed to compete head on to WMT it they decide to. So far they are happy to use the advantages of better service and nicer stores to slowly bleed customers from WMT instead of cut throat pricing, while keeping their prices just above WMT. They realize people are willing to pay a little more for a more pleasant shopping experience, and WMT hasn't a clue as what to do about that as their stores continue running down and in more dire need of costly overhauls that will hit the bottom line like a lead balloon.

    Sentiment: Sell

  • stocksentinel by stocksentinel Jun 24, 2014 6:05 PM Flag

    For years I have watched WMT grow across the world relentlessly crushing established, and seemingly intrenched local businesses. It looked like WMT was a unstoppable plowing the local competition into the ground as quickly as they could open open stores. Over the years this has led seemingly endless mergers of grocery stores, and groceries are about where about half of WMT revenues come from.

    The remaining grocery chains are not the push overs of past, and due to their size now can pressure suppliers just like WMT can for pricing that only in the past WMT could get. At the same time they have become lean and efficient operations that when it comes to selling groceries may have lower costs than WMT has, and they been busy upgrading stores to improve shopping experiences in their stores.

    At the same time existing WMT stores are starting to look ragged, and in need for face lifts. Also telling is they huge amounts of merchandise being placed down the centers of the walk ways in hopes of generating impulse sales has gotten out of control, and hindering movement though the store. Also it blocks views of the merchandise isles on the other side of these pallets islands that now clog the centers of the main pathways of the stores, so chances are what they gain is being lost in sales due to they disrupting the view of other merchandise.

    They way I see it, we are starting to see the first cracks in the foundation of the WMT era, and WMT becoming under real pressure from it's competitors for the first time. With the tables turned can WMT pull up it's boot strings and take back what it has lost, or will WMT become the next Sears, and slowly fade away over many decades?

    Sentiment: Sell

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