Cramer's Mad Money - It's Best Not To Buy Best Buy (12/22/11)
By Miriam Metzinger: Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday December 22.
Best Buy (BBY), hhgregg (HGG), RadioShack (RSH), Amazon (AMZN), Under Armour (UA), Nike (NKE)
Just because a stock has been hammered, that doesn't mean it is cheap. Take Best Buy (BBY), hhgregg (HGG) and Radioshack (RSH); these stocks have fallen 32%, 35% and 48% over the past year. Cramer would buy none of these stocks, because they are broken companies, not just broken stocks. These brick and mortar retailers are facing stiff competition from online retailers like Amazon (AMZN), and are in long-term decline. hhgregg is the most promising of the three, with its regional to national story, and the company beat earnings estimates, but the spike in earnings was driven by promotions for which it had to slash prices to move its merchandise. As a result, gross margins were down 184 basis points.Complete Story »