Friday, February 21, 2014

Best Buy Will Make A Comeback

The decrease in stock price Online Deals ( BBY) and negative outlook for the company is nothing but herding behavior. It seems to me that a majority of the investors have solely focused on the figures reported in holiday revenues. A little more time should have been given to the statements of the president and CFO of Best Buy.

In the short-term, the results were obviously not very encouraging but I would prefer to interpolate these facts and figures and to look at the bigger picture. I have many reasons to believe that the decline in the price of BBY since the announcement of fiscal year 2014's holiday revenue was uncalled for. In my opinion, the management made a smart choice to be price competitive. The idea of investment in pricing came with a higher than expected cost and non-GAAP operating income for the fourth quarter is expected to be 1.75 percent to 1.85 percent lower than last year. This plan affected the margins negatively but in the long term positive results should be expected from this move. Despite the decline in sales the company actually gained more share in the domestic market. Also, a higher margin can be expected in the coming years because the company has a number of initiatives to be executed that will both increase revenue and cut costs.

According to Hubert Joly, due to the company's price competitiveness and improved customer experience both online and in-store, the company gained more market share. The company's Net Promoter Score experienced an improvement of 4 percent. The company also made substantial progress compared to several other Renew Blue priorities that will leave them well-positioned as the company enters fiscal year 2015. That progress was comprised of strong inventory management, comparable online sales growth of 23.5 percent, and very strong retail execution during Power Week. The company also executed a transformational supply chain that included giving far greater access to total company inventory through its recently launched ship-from-store ability that is available in more than 400 stores. The company also decreased its annualized costs by $45 million as of January 16th, 2014. This step brought the company's total annualized cost reductions for Renew Blue to $550 million.

Although, the company's revenues were unfavorably obstructed by the supply constraints for key products, an unsatisfactory mobile phone market, the aggressive promotional activity during holiday period and significant decline in store traffic between Christmas and Power Week, looking ahead this performance reinforces the company's resolve and its sense of urgency concerning its transformation. Going into fiscal year 2015, the company's priorities are to grow its online channel at an accelerated pace, lower its cost structure more deeply and quickly, enhance the innovation and improvement of the multi-channel customer experience. It also seeks to improve its marketing approach and effectiveness especially related to personalization, targeting of buying occasions and customer segments. The company is also attempting to strengthen and grow its Greek Squad services business.

It is important to note that the company's results did not warrant such deterioration in its stock price. I accept that 0.8 percent negative growth in comparable sale is not a good figure but the company showed reasonable improvement on a year-on-year basis compared to last year. Further, the company fetched 0.1 percent growth in international comparable store sales and that is much better result compared to the negative 10.3 percent growth during the same period last year. Best Buy's stock value was largely affected by the performance of its domestic business segments. Finally the company had to face a 2.6 percent decrease in total revenues and negative growth rate of 0.9 percent in comparable store sales. However, in my opinion, the market overreacted and the company will regain a major chunk of its lost market capitalization in the coming years.

My Stance

I have evaluated three aspects of the company that are keeping me optimistic about its future. First, the company's improving operational proficiencies. The company is managing its inventory better and in turn its stores are becoming distribution centers. The company can now ship products from all of its big-box stores and this phenomenon will improve both revenues and margin for online as well as in-store sales. Second, the company's management has plans to cut costs by $725 million. Last quarter's SG&A costs were reduced from $2.19 billion to $2.05 billion and that is a fruitful display of this plan's successful execution. Third, management further plans to refurbish the company's website. Enriched product review capabilities, single sign-on for reward members and account holders, enhanced navigation and amplified cross selling are some examples of the changes management has already made to the company's web platform.

I am not convinced that the market should have reacted this way and in my opinion this whole destruction in Best Buy's price was led by hysteria and herding. Best Buy will regain its lost market capitalization in the upcoming years.

Check Out 'Primal Flame', an Upcoming Atmospheric Arcade Game Where Your Finger is the Match

<Discountp>I love when touchscreens are used in interesting and unique ways, and the upcoming game Primal Flame from developer Irrelevant Fish does just that. You'll start out in total darkness, but a few swipes on the screen with your finger will "light" up your match, giving you limited visibility. From there, you'll need to collect items in order to keep your match flame going while simultaneously avoiding and burning various enemies looking to extinguish your fun. Check out the trailer.

While the trailer is brief and only offers a quick glimpse into Primal Flame, it was definitely enough to capture my attention. The lighting effects are very cool, and the action gives me an almost Tilt to Live kind of vibe, without the tilting. I'm eager to see more, and thankfully we won't have to wait long for that as Primal Flame is set to launch next week on February 25th for $2.99 and with no IAP. If Primal Flame has caught your interest too you can check out the discussion in our forums, and keep an eye out for it next week.

Tuesday, February 4, 2014

VIDEO: Porn Stars Offer the Best - and Worst - Pick-Up Lines

<Promo Codep>Did you know that a polar bear could get you in with a porn star?

That was just one of the amazing little factoids we picked up out at the 2014 Adult Entertainment Expo in Las Vegas.

Another incredible fact - a good Star Wars-themed line might...repeat, might...actually work.

Granted, it's with Aella...and if you saw her thoughts on what makes for a romantic Valentine's Day, you might want to reconsider wedging lightsaber or Ewok talk into your opening line.

And the worst possible pick-up line out there? Well, it should be pretty obviously once you've heard it...but we'll save it for ladies like Tanya Tate, Sophie Dee, Selana Rose, Teagan Presley and Jessa Rhodes to explain (in the NSFW video above).

But don't forget about the polar bear, guys. just might work.

Monday, February 3, 2014

Fernanda Lima: sensualidad y glamour para el fútbol

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Fernanda Lima, prohíbida para los iraníes.

Fernanda Lima, prohíbida para los iraníes.

Fernanda Lima, prohíbida para los iraníes.

Fernanda Lima, prohíbida para los iraníes.

Para la Gala de la FIFA, del último lunes en Zurich y donde esta vez consagraron a Cristiano Ronaldo con el Balón de Oro por delante de Messi y Ribery, los organizadores no tuvieron demasiadas dudas. Junto a un icono futbolístico como el holandés Ruud Gullit, le concedieron la conducción de la ceremonia a la ahora famosísima presentadora brasileña Fernanda Lima, quien ya había deslumbrado en otra convocatoria futbolera. Exactamente un mes antes, el 6 de diciembre, cuando -desde el resort bahiano de Costa de Sauípe- se transmitió en directo para más de 200 países el sorteo de la Copa del Mundo 2014, que en pocos meses se jugará en Brasil. Allí 500 millones de telespectadores quedaron deslumbrados con la sensualidad, elegancia desde su metro y 76 cm y la atildada conducción de Fernanda (aunque su escote resultara demasiado atrevido en países como Irán, que cortó los planos en la transmisión).

Estas tareas no resultaban novedad para Fernanda quien, después de triunfar como top model, se ha diversificado: periodista, actriz, empresaria. Casada con el también modelo Rodrigo Hilbert, son la "pareja ideal" de su país y padres de los gemelos Francisco y Joao, de cinco años. Rodrigo posó junto a ella en el sorteo, al igual que la presidenta Dilma Rousseff y el mandamás de la FIFA, Josepp Blatter.

Fernanda Cama Pereira Lima -Fernanda Lima, a secas- nació hace 37 años en Porto Alegre, Rio Grande do Sul. Ya de adolescente, fue "descubierta" por un fotógrafo en una playa y comenzó su etapa de modelaje, que la llevó a radicarse en Japón, Suiza e Italia. Su debut como presentadora de TV ocurrió en 1999, con un programa de turismo para la MTV. Y desde allí fue trayectoria fue imparable. Su último programa -que ya lleva cuatro temporadas- fue "Amor y Sexo", con una emisión semanal en la Rede Globo, dirigido a un público joven. A pesar de las audacias de los planteos y los contenidos, Fernanda considera que "la sexualidad de los brasileños es escasa. La libertad del cuerpo, el baile, afloran en nuetra sensualidad. Pero es apariencia. En la ama es diferente. Los sentimientos profundos son bastante inusuales".

Fernanda -quien posó desnuda, cuando estaba embarazada de ocho meses, para Rolling Stone- se da tiempo también para estudiar Filosofía en la Universidad Católica Pontificia de Río de Janeiro, donde reside. Y es socia del restaurante paulista Maní, que cuenta con Helena Rizzo, elegida como la mejor chef latinoamericana y premio Veuve Clicquot. Mujer múltiple, ahora "atrapada" por el fútbol.