Thu Dec 17 13:17:00 -0500 2009

MoneyShow.com (New York)

- Despite reporting positive earnings on Monday, Best Buy (NYSE: BBY) shares dropped sharply, with traders concerned about the company’s margins being pinched. (It fell 8.5% on seven times its average daily volume Tuesday—Editor.)

Telsey Advisory Group analyst Joseph Feldman says pricing is even more problematic than in years past, due to a lull in new product offerings and the commoditization of popular items like big-screen TVs. Without new specialty items, Best Buy loses its edge and consumers have less incentive to pay its slightly higher price points.

To view the full article, download the PDF here: MoneyShow.com, December 17, 2009