Stock Talk - Michael Brush, MSN Money and UpOnStocks.com
Feb 14, 2013|
Stock Talk - Michael Brush, MSN Money and UpOnStocks.com
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Well if you bought stock in Amazon.com. Along time ago you've made me. Lot of money on Amazon.com they are the 900. Pound gorilla in the retail space and we are joined by Michael brush. From MSN dot com he's gonna tell us the next ten to victims. Of Amazon.com. Michael welcome to show you can. -- well a good Italy is fascinating article this week I want to compliment you because. You know we watch Amazon.com I think the three of us in the studio here and idled most of our audience has bought something on Amazon.com but they have. Actually killed a number of companies in the last ten or fifteen years and. Yes that's right they have -- steamroller. And not yet. Well let's go through the ones that they've already put out of business like. Barnes & Noble. Well now it's -- around but there so that's. Pretty big problems. Sure -- orders orders are. You levels. Well Circuit City probably. My best buy. Best -- has been severely damage. That's Iraqis to -- sixty dollar start to start that's shortly. Program. I -- green numbers that topical story as you're ready ready and a -- and ready. So here's the first one. On mine as much as we are down mine you'd still only 10% of retail -- so in other words Amazon and a lot more ago. Number. Remember. Amazon sales grew 22%. Or order. That's phenomenal that's coming from somewhere back somebody's losing at zero sum game. Last. Is there. In general on average Amazon prices -- 12% lower than African mortar stores. Product product that's or anything. Well who's gonna get hit I think you'd find is gonna get it -- an answer. Well you know I do because I read your article -- what I wanna do is I would -- look at some of the companies but then we should talk about how you strategically. How you could short the stocks if your if your good bits like you you convince the audience. That for instance Wal-Mart is gonna be a victim. Of Amazon right you're gonna lose market chaired Amazon and we should talk to our audience -- short Wal-Mart stock. Let's just teach people aren't finished I think that's -- -- -- code director. Companies that are gonna get nailed -- Have three characteristic primarily they're going to be so. On differentiated. Commodity products like Chan who flat screen -- sporting goods goods. In name it whatever in whatever the scene where you buy it from. We just described all my shopping on Amazon.com. If you're gonna buy golf equipment right. It was to with a different weary by a golf balls at the same golf balls Larry Obama Amazon.com even exporting -- At a -- to. Any company that toast digitize products like video games music videos. Dirt roads they have problems at third. To have a war reputation with consumers. Are mobile because people now I've heard our options. Now do you listed in here's where tickets can. Yeah Wal-Mart for one right Wal-Mart is like a shopping experience eagle in there and you can fill two carts for 300 bucks I mean are people still gonna go to Wal-Mart -- And just the Wal-Mart because a lot of impulsive buying. Wal-Mart has had some defensive characteristics. Better work. One is it's also its world it's a country or just cursory so -- are so so so that's not have to have Mercury division but. That's going to be court rep for him just could dispute should change some different -- and the other one is that he. About 20% of them on choppers may be two point but don't have credit cards about. Point five point six senator I'm sorry Wal-Mart and about point 6% of Wal-Mart purchases don't catch in other. -- -- -- -- -- And annual life 50% of Wal-Mart shoppers are on assistance. -- got and so they're going to be. Now the other thing about Wal-Mart is Wal-Mart took out as but it is it wise up and it worked a lot of money. Couple that division and so our valley with thirteen hundred ways and it's gonna do not -- billion in e-commerce sales in. -- 23. At that compares to Amazon. -- prosecute it so so in other words. -- writing back oh I don't think art disappears but they have problems -- a lot of what -- -- -- commodity product and also don't get great ratings by. Or was it like -- What about target you say Amazon's been laughter target and you know I I I look at somebody like my wife she likes the target shopping experience she enjoys -- June likes the target shopping it's. Well you know and then there's the old you know -- cheap. It took but you know what this is another one that tells a lot of -- our -- -- That. Got a 5% discount on credit you know their brand secret court that record yeah that's a support of people like the bargains are. Person do you. It's part. I really like to see the colors you like to feel -- texture you like to try it on if it's a piece that piece you buy clothing targeted target. They need -- I he had absolutely great market. And you know what's interesting here is that said he sure that people who have a lot of money. Don't aren't buying stuff. Urged people who have. Little bit of money they don't like that there aren't accurate because we're primarily because deterrent. Tied it up autocratic or they can't afford to act like Russia and don't want to so. And you know what else Michael you Wellesley don't know what kind of quality you're getting if you're going to he cannot tell you. That's a lot of money don't mind it could be so. Some a so so that. There's a bad economy their base income and target caters to keep. Have less money so that's the kind of defense that to their customers sort of natural one to wanna you know. And know that they're gonna hold onto it by -- -- after. What could you say the same thing for Bed, Bath & Beyond. And that's beyond it's different because there is the I think. Commodity product were ever really seen much -- that's toward that's. The I know other matters a lot to do local urgency is encourage your local case they get that it is not a lot in the -- You know coffee makers you know whatever all that stuff is the same occupied on Amazon and in the cheaper you might have to attack CME isthmus voluntarily but I guess -- people are. Right so we read your article we agree with your strategy. How do we make money that's what people listen -- -- -- -- -- -- know how to make money -- -- -- -- Amazon's stock -- short. Bed, Bath & Beyond what do they do. You know I mean you mentioned options you mentioned short it. And I don't know I mean you can you know like other content that like PetSmart you know this one it's got a high valuation. And it's got Amazon -- and they have the defense that they offer services right. Yeah but I don't stretch that aren't personally where I've switched I I. Wanted to buy things at PetSmart they didn't sell them and about the money Amazon -- -- -- so I no longer that's a -- On Amazon. But -- you know I mean you could. You know I mean I wouldn't. I would venture were just on the basis of the threat however at -- word definitely. You know people in in in in in in -- business experts and state farm. It's -- about the mosaic -- to look at a mosaic of information that you make a decision. In dispute to be part mosaic it can't be actionable thing 82 short target because of -- But you know these companies are gonna have trouble because and as I mean they'll -- You know it for a -- help arteries are. It's gonna be taught by him. Expected. And and and you know maybe the best -- -- what I mean by investors that we don't make money because you know we make money because we have a more urgency. You know and we don't. One and this is like you know the potential lose money on these -- I think. Yeah have you you this articles posted right it's not a Margaret. Tonight Mike thanks for your time. Michael brush MSN dot com. Bright guy. So get whacked with -- state tax thing whenever the sense I would handle on year so I mean. What about eBay and yeah now I'm thinking in the Amazon might taken. What Obama could in some of the other online shoppers is going it will tell you I tried some other online shopping at Christmas. They promised you know it delivered before Christmas did that experience he get the stuff to January so. You know. The 22 it is there. Either on the 22 or before the -- -- tracking it it's right it's supposed to be in. That story. All right there's a story breaking about a bunch of layoffs out in Springfield -- Springfield and recover when a combatant the need to pay attention. These 200 layoffs. We'll talk about that next company to expect.