Cramer’s Weak US Consumer Play (BBY, CC, LOW)

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By Douglas A. McIntyre Updated Published

On tonight’s MAD MONEY on CNBC, Jim Cramer said some companies fail for many reasons.  If you have to have to US consumer spending, the rate cuts might not help.  Cramer has two companies that won’t have to make excuses because of the US consumer.

Best Buy (NYSE:BBY) has left competition like Circuit City (NYSE:CC) in the dust.  The company decided to sell more electronics farther away from the U.S.  The company does not have more exposure internationally than the U.S. but ambitions will go there to be 50/50 by 2010.  Cramer slammed Circuit City, just like we did last week.  Circuit City also hit today’s 52-week lows.  Best Buy still has $2.9 Billion left for share buybacks and is expanding in the U.K. and China.  The earnings warning on Lowe’s (NYSE:LOW) is going to pull this down tomorrow.

Jon C. Ogg
September 24, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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