Digging Into May Retail Sales: Were They Actually Bad?
May retail sales were down 0.2% from April, but up 5% from May 2011. We think investors should remain focused on the big picture.
HGG
Best Buy’s Fiscal Third-Quarter Results Disappoint; Excessive Promotions and Weakness in Europe to Blame
On Tuesday, Best Buy (BBY) reported poor fiscal third-quarter results that showed modest comparable store sales growth but material operating-income deterioration. Though results of the world’s largest electronics chain came in lower than our expectations during the quarter, Best Buy reaffirmed its adjusted diluted earnings per share guidance range of $3.35 to $3.65 for the year. Nevertheless, we are placing our fair value estimate for Best Buy under review while we re-evaluate the implications of its aggressive pricing actions on long-term profitability. We expect to lower our fair value estimate for the retailer materially. Best Buy’s total revenue increased 1.7% during the period thanks to modest domestic same store sales expansion led by its online channel, offset by international performance … Read more
The Impact of the US Housing Recovery Cannot Be Underestimated
Valuentum reveals the far-reaching implications of a strengthening US housing market.
January 5-9: The Week That Was – Drowning in Crude
By Brian Nelson, CFA The first full week of 2015 was a wild one! Monday and Tuesday brought some hefty losses to the indices, but the middle of the week helped recover most of the ground, only to give some of it back Friday. When all was said and done, however, the S&P 500 still closed comfortably above 2040, a huge leap from just 5-6 years ago. We’re still enjoying the good times, with economic data still coming in relatively sanguine. Like a frog in water, the markets are just waiting for the next shoe to drop, and the Federal Reserve is doing all that it can to assure investors that the Yellen-put is there to prop up the markets should … Read more