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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dennis 3 who wrote (46430)	2/2/2012 10:01:26 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78751

Based on my metrics (P/S, EV/ EBITDA) BBY looks only about 30% more expensive but is in a better competitive position. For one thing, I believe that BBY wireless kiosks in malls and such are much better run and busier than RSH stand-alone shops. If I were to bet on a turnaround in the electronics sector, i would bet on BBY. However, I wonder how you compete against a competitor like AMZN with lower fixed cost who is also willing to sacrifice margins , plus has the advantage that their customers for the most part don't pay VAT (adding 8.5% to BBY/RSH sales prices in my case). I think BBY may get a lift when AMZN has to pay VAT in CA,starting in 2013 (I believe) but that is still a while todays fast money world. Even with that, the other advantages that AMZN has may still allow them to beat BBY and then there are of course other online electronics retailers like tigerdirect that may continue to offer their wares online without charging sales tax.