tag:blogger.com,1999:blog-1527840491496268397.post6814762673164748441..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Young Money - Why Value Investing In Tech And Retail Companies Doesn't WorkUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1527840491496268397.post-46570582910717103452014-11-29T19:34:03.497-07:002014-11-29T19:34:03.497-07:00Further thoughts on the VIC:
http://www.creditbubb...Further thoughts on the VIC:<br />http://www.creditbubblestocks.com/2014/11/under-pressure-from-uber-taxi-medallion.htmlCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-20033788855002989042014-09-29T22:35:35.612-07:002014-09-29T22:35:35.612-07:00"Buffet loves IBM, of course."
Yea, tha..."Buffet loves IBM, of course."<br /><br />Yea, that's because in Buffet's eyes "America is so exceptional I gotta wear shades"!!Johnnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-72758519533624040812014-09-29T12:13:18.200-07:002014-09-29T12:13:18.200-07:00Buffet loves IBM, of course. Buffet loves IBM, of course. CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-48890855079524940352014-09-29T12:12:29.558-07:002014-09-29T12:12:29.558-07:00The Shack turns over inventory about 4.3 times per...<br /><br /> The Shack turns over inventory about 4.3 times per year. There's about $180,000 of inventory (cords and widgets?) per store. By comparison, Best Buy turns over inventory close to 8 times per year.<br /> Best Buy sales are $300k/employee, Shack sales are $125k/employee. <br /> So, Shack takes almost twice as long and 2.4x as many employees to sell a dollar of inventory.<br /><br />http://www.creditbubblestocks.com/2014/04/radio-shack-fun-facts-rsh.htmlCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-66901935605773652942014-09-29T12:12:00.493-07:002014-09-29T12:12:00.493-07:00"First comes the strategic bankruptcy, well i...<i>"First comes the strategic bankruptcy, well in progress at Best Buy, where management’s sole focus is improving some arbitrary metric from last quarter, even when doing so actually interferes with customers trying to buy something else. The financial collapse comes later. But if history is any guide, the second part, once it starts, will be quick."</i><br /><br />This reminds me of Radio Shack - the strategic bankruptcy was selling cell phones.<br /><br />http://www.creditbubblestocks.com/2014/07/why-best-buy-is-going-out-of.htmlCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-66672815965997037442014-09-29T12:11:12.257-07:002014-09-29T12:11:12.257-07:00I would guess that a RSH liquidation will help BBY...I would guess that a RSH liquidation will help BBY. <br /><br />Also, BBY at least makes money. It has higher revenue than SHLD, which I didn't realize. CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-85800902013182489232014-09-29T00:32:59.770-07:002014-09-29T00:32:59.770-07:00Thanks for the link.
I know you;ve written about ...Thanks for the link.<br /><br />I know you;ve written about BBY before, I think it's an obvious value trap that's facing a future of constant, profitless decline. I don't know how much it would temporarily benefit RSH liquidation, or to what extent the market is factoring that into the share price, but l-t it's toast. <br /><br />There's a thread on VIC that makes IBM look like a value trap: <br />http://www.valueinvestorsclub.com/value2/Topic/TopicDetails?topicId=300<br /><br />I looked at CSCO a while ago and came away with the impression that it was doing the same thing, i.e. it was using acquisitions as a form of capex so that earnings and cashflow are overstated. But IBM has a worse balance sheet.Jameshttps://www.blogger.com/profile/06597727760854955867noreply@blogger.com