Best Buy (BBY) keeps going higher despite worries about margin compression. Probably no margin compression.

Best Buy, the consumer-electronics giant, had an inventory-to-sales-growth ratio of 84% in the fiscal quarter ended Aug. 29 A ratio below 100% means inventories declined at a greater pace than sales, or grew by less than sales. Indeed, in Best Buy's case, sales surged 12% in the period, while inventories shrank 6%. Best Buy trades for 14 times estimated earnings of $2.94 a share for the year ending Feb. 28, and 13 times fiscal 2011 estimates of $3.18. "Best Buy is poised to win this holiday season," says Kevin Grant, co-manager of Oakmark Fund, which owns the shares. "The big thing today is the connected lifestyle. Best Buy is at the forefront." Though Grant says Wal-Mart Stores (WMT) has done a "great job" in consumer electronics in the past year, there is less overlap with Best Buy's product offerings than one might think. Grant expects Best Buy's shares, now 42, to outperform the market next year.

This morning Philips (PHG), the big consumer company, reports a great number and heralds the return of the consumer. Good time to short Best Buy (BBY)? I don't think so.

While analysts decided to downgrade Best Buy last week, this stellar retail stock could impress a set of investors with newly lowered expectations when it announces earnings on September 15.

With the closure of Circuit City, there does not seem to be any major competitors, except possibly if Walmart's expanded electronics line competes well.

pharma

like the company and got dip when they beat earnings and droped because with circuit city out of the way they should have done better ?

Others are showing signs of coming to life after a vicious beatdown, including SanDisk (SNDK) -- I still don't think there was that big a deal there -- Yum! Brands (YUM), Abbott Labs (ABT), Best Buy (BBY), Corning (GLW) and Verizon (VZ).

On July 13's "Stop Trading!" Cramer mentioned Oppenheimer's upgrade of Best Buy( BBY) and Thomas Weisel's upgrade of SanDisk (SNDK). "This is all gadget-buying," he said. "The gadget-buying rally was really something that got started when gasoline was going down." Read more here.

That means you can make a lot more money on the oil-user side: retail like Kohls (KSS), J.C. Penney's (JCP) and Macy's (M); restaurants like Brinker (EAT) and Darden (DRI); apparel like Jones (JNY), VF Corp. (VFC) and Nike (NKE); as well as anything that goes into Best Buy (BBY).

overpriced

why would you pay up for something you can get somewhere else cheaper. go in the store find what you like with the highly trained workers then go home and order it off the internet

slowing consumer spending and poorly run stores.

If you can buy it easier over the internet, sell the big box stores that supply it.

electronic retails is a bad sector

Don't buy that retailers are done falling

Going to miss earning big time this Christmas Season. Dan Fools agreed to buy 3 million GNR CDs for exclusive rights as vendor. No one buys CDs anymore and not from one guy who kept band's name.

To much competition from cheaper on-line stores

retail sucks

timing