What a Difference a Year Makes for Best Buy

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Nov. 13 (Bloomberg) -- David Strasser, managing director at Janney Montgomery Scott and Bloomberg Government senior economist Nela Richardson discuss the turnaround in Best Buy shares from just a year ago. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Way down.

Have you ever experienced something like this?

This was pretty special.

The stock, when people hate it, they hate it.

I have never seen anything like it.

When they love it, they love it.

I just thought people were misreading it.

I still think there is a lot of value.

One of the most agrees that -- egregiously mispriced stock.

At 1.i asked if i could stop coverage and buy it.

Seems like that was a much better way to report it.

Where does it go from here?

It hasn't an incredible rebound.

Doesn't all rest on the holiday sales season?

If you look at the stock thomas to one of the cheapest retailers out there.

Maybe six times even.

-- ebitda.

When i think of competitors, i think of home depot, lowe's, other bigger retailers.

Staples a little higher multiple.

There is still value here.

I was looking at the numbers.

Looks like so for doing it on this expense side.

Not on revenues.

Revenues down from a year ago.

When did that turn around?

I think you will start to see that in the third quarter.

The corridor they announce next week, you should see positive, store sales.

Arthur that they have sold off.

I think they will do 2-3%, for the third quarter.

They are up against an easier number.

Part of it is i remember last year when he wants a show room.

Some of them you do not follow, is there an news sustainability to the generation of cash by retail or is it passion to fashion?

Michael kors a cool one.

Is it season to season hit or miss or is there a new maturity?

I think it is both.

As a consumer, i think there is a certain maturity for ralph lauren.

There is a brand that can offset hits and misses.

If you look at the abercrombie and stuff -- that is a disaster -- those have been a disaster.

Was that you modeling in the show room?

I wonder what makes best buy successful and radioshack not such a successful experience.

Why would some retailers excite you?

I follow you on twitter.

Why aren't they a radioshack?

First of all, the size of the store.

Of much better mix of product.

Radioshack -- they were just disintermediation a lot easier.

They lost -- they did not change the business.

They have not had a merchant for a long time.

We will see how that works out but they have not had a merchant running the business for a really long time.

Did circuit city need to die for best buy to come back in the ashes?

Consolidation is just what is going on and retail, no doubt about it.

There was a time where people misunderstood the strength they got from the closing of circuit city.

They were coming off of what was a consolidation.

People misread that as a secular decline.

Michael mckee and i were on radio yesterday.

Or just few.

There was the snow falling down.

The holiday season was starting.

What is it going to be like?

What will this holiday season be like?

I think it will be ok.

The low and will continue to struggle and will be very competitive at the low end.

What walmart is doing on thanksgiving is tremendous.

The one-hour guarantee could be the first hit -- are they desperate or trying to take the high ground initiative of the season?

One question we were talking about is whether or not some of the inventory they have, an opportunity to get rid of that.

My sense is it is probably more planned than that.

They said they're going to get their customer back.

One thing about walmart, they are merchants first and foremost and want top lines.

They make about some margin am about half the business its consumer bolts -- consumer bolt ables.

We have to have you back through the season.

I have about 18 other questions.

Our twitter question of the day, what is your favorite shopping experience?

Going to the show room at best

This text has been automatically generated. It may not be 100% accurate.


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