Is Wall Street getting a tiny clue?

[aquart]

http://www.deadline.com/2011/09/does-best-buys-lousy-quarter-spell-trouble-for-media-companies/

Does Best Buy’s Lousy Quarter Spell Trouble For Media Companies?

"Investors who are shocked today by Best Buy’s miserable performance in the quarter that ended in August should take a fresh look at Bernstein Research analyst Craig Moffett’s important studies of what he refers to as the media industry’s “looming affordability crisis.” A report out today, synthesizing some of his recent research, notes that once the poorest 40% of the population pays for food, shelter, transportation, and health care “there is nothing left for clothing…for debt service…for cable…or for phone.” If the government cuts entitlement programs then it would “have a profound impact on spending patterns,” Moffett says, that would lead the media industry into “uncharted waters.”"

-more-


"LOOMING AFFORDABILITY CRISIS." That's gonna cut into them bonuses.

[thereismore]

1. Eventually, even the corporate masters will understand that empoverishing everybody but themselves

cuts both ways. But hey, they will have had their wealth, so screw the poor.

[KansDem]

2. Reminds me of this old Gahan Wilson cartoon...

I think I won!

But instead of a lone soldier declaring "victory" in a world of death and destruction, we could substitute a corporatist and the caption could read, "I think I got it all!"

[Old and In the Way]

6. Would be a shame to have all that money and nothing to buy.

I suppose it's possible to have an economic model that makes stuff for only the top 2%, but it would be something that has never existed in the industrial age. One has to wonder who would do the working if the economic model caters to the needs of the top 2%.

[RKP5637]

4. Yep, their wealth is global and highly portable, they will just take their game of

greed and usury and improvise others. Wealth today knows no boundaries.

[aquart]

20. Uh, you might want to look around.

Europe is on the edge of collapse and China...China is a house of cards.

Wealthy is portable.........as long as there are economies.

[RKP5637]

22. Yep, good point, if it all sinks. It's all relative, isn't it. n/t

[DJ13]

3. The manufacturers do everything to maintain high prices instead of competing on price

They add "Google TV" to last years HDTV in order to keep prices above $1,000, then they are shocked that consumers arent buying.

Same holds true for game consoles, and most every other segment.

[Old and In the Way]

13. Industry consolidations have made that possible.

When there's only 1 game in town, there's no pressure on price.

[ChandlerJr]

5. Maybe it's the Amazon effect

Rivals, Weak TV Sales Weigh on Best Buy's Profit

By MIGUEL BUSTILLO And MATT JARZEMSKY

Best Buy Co. is losing the confidence of investors who worry that its big-box business model looks increasingly antiquated as online purchasing grows ever stronger among cost-conscious shoppers.

The world's largest electronics chain reported a 30% plunge in quarterly profit and saw its stock tumble as sales at its U.S. stores open 14 months dropped for the fifth-consecutive quarter.

While the Richfield, Minn., retailer reported gaining market share in smart-phones and tablets, the hot growth categories in electronics retailing, those gains fell far short of offsetting declines in its old cash cows, sales of televisions and computers.

http://online.wsj.com/article/SB10001424053111904265504576568382745824372.html?ru=yahoo&mod=yahoo_hs

[Old and In the Way]

11. I think there's 2 different trends at work to the detriment of Big Box stores.

The Boomers have got all of the computers, smart phones, TV's that we need. I have 4 TV's in my house...only 2 being used. I have 2 refrigerators, 4 cell phones (only use 1). 4 laptops - only use 1. OTOH, young adults just getting into the work force are finding it difficult/impossible to buy this stuff after food, gas, rent/mortgages/healthcare, insurances, phones, student and car loans are paid. They have little or no discretionary income. With the internet, it's easier to save gas, shop on line, compare prices, and make purchase decisions without sales pressure and get exactly what you want. Fewer people are making impulse buys. I do think the future is going to be more online generated sales at the expense of the big box stores. And yet another source of jobs will vaporize.

[dtexdem]

7. A plutonomy doesn't work, ultimately not even for the plutocrats.

But getting a clue about that is very difficult for the plutocrats. And when they do get clues, doing something about the situation is all but impossible for them.

[banned from Kos]

8. What the fuck is this "Wall St" you speak of? Best Buy is Main St all the way

Best Buy reflects retail consumer buying.

Wall ST is investment banking - IPOs, secondarys, bonds, etc.

[Vincardog]

9. Best Buy is know nothing minimum wage sales help hiding behind a corporate logo

[banned from Kos]

10. Agree - Main St all the way - my punk home town of 90,000 has a Best Buy

they are everywhere.

I would prefer locally owned stereo shops and record/CD stores.

But still - its a CONSUMER market - not Wall St.

[salin]

15. Publically traded company. Share prices fell today

I think the OP is about the nexus between consumer market flat lining, and the ripple effect on investments per Wall Street.

[girl gone mad]

16. Best Buy is not "Main Street"

It's a multinational corporate retailer. Like all globalist Wall Street traded companies, its goal is to extract as much wealth as possible from Main Street to the benefit of a handful of executive looters.

[banned from Kos]

17. I like you more every post! (as I understand you)

You are an agrarian atavist conservative to the core! Break everything up!

(that is a compliment!) there is something to be cherished in a Mayberry RFD lifestyle! (not for me though)

[HCE SuiGeneris]

23. Very well said.

:thumbsup:

[Safetykitten]

12. No.

[pacalo]

14. No report necessary to convince me -- my common sense told me this a LONG time ago...

A report out today, synthesizing some of his recent research, notes that once the poorest 40% of the population pays for food, shelter, transportation, and health care “there is nothing left for clothing…for debt service…for cable…or for phone.” If the government cuts entitlement programs then it would “have a profound impact on spending patterns...

[onethatcares]

18. well, no shit.

Bank of America is gonna lay off another 30,000 people with homes, cars, food bills, utility bills, kids in school, kids not in school, medical bills, and no idea of where they are gonna get another job.

This is the life of corporatism and plutocracy and if you don't have a job you sure as hell ain't gonna be buying the NFL package on a new HIDEF 3D tellyvision made in Communist China and sold at the nearest box place.

I'm kinda jaded any more.

[lib2DaBone]

19. Well said. We can't believe how corporate America soils it's own nest....

Corporate America Soils it's own nest.. kills jobs and keeps wages low.

Yet the media acts surprised when Americans have no money to buy anything? Duh.."

[The Velveteen Ocelot]

21. They're killing the goose.

No more golden eggs.