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Best Buy vs. Bed Bath & Beyond
10 Apr 2012 EDT - CNBC.com
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Certainly it is no shocker that Best Buy and its core business model have been struggling—we placed the retailer and its cohort — Radio Shack and HH Gregg — in the 'Sell Block' segment back in December on "Mad Money," warning investors against falling into a value trap. With the stock down almost 30 percent in the last year, Best Buy’s struggles were topped off most recently by its disappointing quarterly announcement at the end of March. And the company’s restructuring initiative unveiled on the same day — including $800mm in cost reductions by 2015 — received a lukewarm response by the investment community. Turnaround initiatives have ultimately been too little, too late… as the brick & mortar retailer continues to be plagued by its status as Amazon.com's show-room.

The big conundrum that many investors can’t wrap their head around: How has Best Buy managed to get killed so ruthlessly by online competition while Bed, Bath & Beyond continues to perform with flying colors? Simply by adding a “B” to the ticker symbol input bar on Yahoo! Finance yields a much more attractive chart. Those upward curving slopes of the BBBY chart (up just under 30 percent in the last year) vs. the dismal descent of BBY? No comparison.

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