Best Buy made a brave attempt to tell the story of the bear market and its effect on the company in a quarterly earnings release this week.
It didn’t mince words: ‘Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we’ve ever seen,’ said Brad Anderson, its vice chairman and CEO. ‘Best Buy simply can’t adjust fast enough to maintain our earnings momentum for this year.’
With the use of the word ‘seismic’, news-driven algorithmic traders must have had a field day, and so did the press. ‘Its bit of honesty was taken to the extreme by the business media,’ said ‘Market Maven’ Marek Fuchs, in a video on TheStreet.com TV called ‘They just don’t get Best Buy.’
Fuchs, who delivers commentary to his wife from the breakfast table and films it for TheStreet.com, said he applauds the use of ‘direct’ and ‘declarative’ language.
‘Best Buy is hitting a different turn, but it’s a quality company,’ Fuchs said. ‘Best Buy is not on its knees like Circuit City, in bankruptcy court begging its creditors for relief. You have to make a distinction.’