TraderMD
Short

BBY BlockBuster Bust?

NYSE:BBY   BEST BUY INC
HVF pattern developing. A macro perspective: short BBY             long-term simply because of online retail dominance for tech products. I'm skeptical that brick and mortar retail will survive. BBY             prior CEO             placed a cost focus strategy that the new CEO             has agreed and does not plan on changing. Cost focus strategies does not help with growth unless the company was operating inefficiently in the first place. Otherwise a cost cutting play is basically a survival strategy for concerns of a bad financial outlook/guidance. Cost focus helps companies to report better quarterly Income Statement. BBY             still faces the same fundamental challenges as ODP             , M, WMT             , TGT             , HGG, SHLD             , and other retailers. Drop in BBY             competition will not save them from enduring the same fate. Thus lower competition will not drive earnings or market shares of BBY             up, or any other retailers for that matter - as some analyst have claimed. New products on the floor will not help either when information regarding the products can be found online, eliminating the need for a salesforce or marketing. However disadvantaged consumers might find BBY             brick and mortar stores useful temporary.

Also form a fundamentally aspect, although BBY             is not showing Negative Income (not yet), Annual Cash Flow statements are already showing declines in operation. If this trend continues I expect more smart money exiting. The 10 yr weekly chart already indicates a declining trend from BBY             all time high, and as the company scrambles to lean itself to changes in market landscape, remedies like capital injections and liquidity will not save BBY             . Until I hear a dramatic change in competitive pricing or some kind of operational advantage similar to AMZN             , I don't see BBY             outlook getting better. BBY             might be a BlockBuster Bust.
TraderMD
4 months ago
Daily Chart Update.. looks like BBY is gathering momentum in the channel to pop to the up side to make the H3 mark. Then I expect it to comeback down to its L3. Time will tell.
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TraderMD TraderMD
4 months ago
I did not notice OBV was ascending lets if it holds.
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TraderMD
4 months ago
BBY broke up lets see if it will hold and continue to form a H3, or prematurely retreat. Possible support can be formed and resistance can be tested.
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