Consumer discretionary anyone?

[Small Biz Owner]

Best Buy shares hit by sales fall
BBC News - ý20 minutes agoý
Shares in US electronics retailer Best Buy have fallen 7% after it reported another decline in sales. Excluding new store openings, its US sales fell 2.7% in the three months to 27 August from a year earlier, the fifth quarterly decline in a row.

Best Buy should be raking in the dough, and profits, especially since their main competition Circuit City went bankrupt no so long ago. Right?

Consumers are either broke or afraid to spend.

DOW to rally? You ain't seen nothing yet.

[Small Biz Owner]

Martin Crutsinger, AP Economics Writer, On Wednesday September 14, 2011, 9:45 am
WASHINGTON (AP) -- Consumers spent less on autos, clothing and furniture to leave retail sales unchanged in August.

The lack of growth suggests households became more cautious during wild stock market fluctuations and increased fears about the economy.

The Commerce Department also said Wednesday that retail sales were slightly weaker in July than first thought. They rose just 0.3 percent, down from the initial reading of 0.5 percent.

Auto sales fell 0.3 percent in August. Sales at clothing stores declined 0.7 percent

Are these the celebrated green shoots?

[usaone]

Many people are buying online.

Amazon ect.

Best Buy has more competition than ever.

[Small Biz Owner]

My point is that consumers are cutting back, being laid off again, and have less to spend. Markets are supposed to be forward looking. Based on forward looking information the data and the rally yesterday do not correlate.

[usaone]

Sure it does. Who says things won't be improving in the next six months?

[Trongersoll]

Best Buy isn't. The people i know that shop there are the ones that don't know any better. there is Amazon.com, Tigerdirect.com(has some brick stores) and newegg.com.

[Deleted]

Small biz

For every company that has issues (best buy), there are opposite stories of winners

Seperating the so called wheat from the chaff is what most GOOD investors do

If you still own stock in Blockbuster, you are slightly behind the times (netflix may even be late)

The economy changes....those companies that change with it, prosper

Those that fail to adapt, close

It really is that simple

[Small Biz Owner]

The economy changes

Less discretinary income = less sales = less profits = less earnings = lower stock prices.

Real median household income across the U.S. was $49,445 in 2010, a 2.3% decline from 2009. That’s a dramatic year-to-year decrease, and it’s a trend that began three years earlier.

It really is that simple

Yes, it really is that simple. Median and mean incomes are lower now than 11 years ago in 2000

Data not adjusted for inflation.

[Deleted]

Ok

I agree with your macro outlook....we are coming out of one of the worst recessions this country has ever known....and may even go into a double dip (but i dont think so)

But i dont care about the macro....

I care about the single individual stock (company) that i own. And my list is very selective (16 companies) at this point

And i ask myself the following questions

1. Is the company still churning out profits
2. Is the company still paying out it's dividends
3. Has the dividend increased....and what is probability of the dividend being cut or reduced
4. Are they any major catastrophic issues for the company (ie BP)
5. Is there any major issues on the horizon to change the competitive advantage this company has?

I do quarterly checks on every company i own. I read all the quarterlies....and read a lot of opinions on what. when, and where my company may be going.

This is why even though i agree with the macro portion, it doesnt matter in the long run to me

[Small Biz Owner]

gdgyva, you are an accomplished investor. I salute you. We seem to have the same investing style. My warnings are more in tune for those who do not perfom such good dedicated research prior to making stock purchases.

This is why even though i agree with the macro portion, it doesnt matter in the long run to me

It is nice to know that you seem to see, what I see also, macro speaking.

[Deleted]

Thank you

I do see....and ANYONE not doing their homework investing in single stocks needs to be committed

I hope the macro changes...i know a lot of us do......it will depend on jobs and the debt

But there is still money to be made investing in HIGH QUALITY stocks.....and it sure in the hell beats the 2% 10 year notes

[usaone]

Small Biz

All those numbers you have provide are old numbers, we are a few days away from Q4 2011 and those numbers are from 2009 and 2010.

As you said the market is forward looking. Investors are looking at 2012 not 2009 and 2010.

[Small Biz Owner]

All those numbers you have provide are old numbers, we are a few days away from Q4 2011 and those numbers are from 2009 and 2010.

Those were the latest numbers available for income data. You cannot identify a downwards trend? Try taking a class in statistics.

[Small Biz Owner]

If our economy was as healthy, and in such a recovery mode as Wall Street wants us to believe, then even Best Buy should be having sales increases, not decreases.

[Small Biz Owner]

People have no money.

Or are afraid to spend it, if they do have it.

[bean29]

I dunno. I have been spending like mad on our house. We tiled two rooms in the basement, hung shelving and bought furniture in the last two months. I have about another $1000.00 in spending in my immediate future to finish the room.

Modified, I mixed my response to two seperate posts. Moving the non-relevant part to the correct thread.

[verrip1]

Here's my litmus test. If equipment sellers push extended warranties hard, they are looking out for their interests ahead of yours.

[The Virginian]

But there is still money to be made investing in HIGH QUALITY stocks.....and it sure in the hell beats the 2% 10 year notes

Couldn't agree more - Unless we fall into total anarchy people have to purchase stuff from someone, People still need Utilities, People still need Food, People still need all the necessities of life no matter how bad the economy is so good stocks and good companies will keep on churning out profits.

They may need to lay people off and cut expenses but people will keep buying their goods and services because that's the way the world works.

Stop worrying and start Investing!

[The Virginian]

Disagree. People don't have to "buy stuff from somewhere."

Well you can disagree all you want but people will always need the basics. You can't live without them. But go ahead don't Invest. I'll still make money!

They can do without, use older equipment or visit the thrift store or pawn shop. They can even take things out of the garbage and fix it.

The stuff had to come from somewhere and someone had to buy it new. Nothing is forever.

People have to have food, they have to have shelter, Medical, clothing, fuel .......... If they don't buy it themselves then someone has to buy it for them........... Pay me now or pay me later ..... either way I get paid!

[Deleted]

Toughtimes

That is all true.....

But, we (the american economy) have gotten used to the finer things in life

People on welfare drive freaking Escalades....and use food stamps

Some companies will feel the pinch...others will adapt, and thrive

Your job is to figure out which is which....

And invest accordingly.....because this is still an INVESTING board....and we are all here to learn and make money for ourselves and our family