When Best Buy, Inc. (NYSE: BBY) announced that CEO Brad Anderson would retire this summer, the obvious choice to replace him was current COO and President Brian Dunn. After all, Dunn is a Best Buy vet and has had a hand in making Best Buy the top consumer electronics retailer in the U.S. With Anderson and Dunn running the show, Best Buy rose past every competitor and held the larger mass merchants at bay.

The retailer has not had an easy time with the recent consumer spending slowdown, but its fundamentals are very solid and it retains a competitive advantage. Consumers continue spending money at Best Buy, and voting with dollars is a sign of success. Dunn will face one of the hardest times in Best Buy's history since consumers have tightened their collective purse strings. Still, he is the right pick and Best Buy's long-term future continues to be very bright, the current retail malaise not withstanding.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"We believe that the most prudent way to make money in the stock market is through long-term investing in 'best of the best' companies," says growth stock specialist Nate Pile.

In his Nate's Notes newsletter, he explains, "With that in mind, we turn to one of our core portfolio holdings as out favorite investment for 2009 -- Apple (NASDAQ: AAPL), whose products represent 'best in class' in just about every category in which it competes.

"We believe investors have shifted their focus entirely to the extreme near-term and are completely ignoring the long-term fundamentals that are in place for the Apple.

"To be sure, the stock has lost over 50% of its value over the past twelve months, but we believe the reasons for the decline are all short-term in nature, and we cannot help but get excited by the opportunity to once again become more aggressive about adding additional shares to our portfolio.

Welcome to the 70th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, I'm pitting Wal-Mart Stores Inc. (NYSE: WMT) against Best Buy, Inc. (NYSE: BBY) in terms of one nice and profitable category of product: consumer electronics. Although many would argue that consumer electronics have a slender profit margin, the fact is that consumers can't get enough gadgets.

They keep buying and buying and buying. Flat-panel televisions, iPods, cellphones, PCs -- you name it. With the insatiable appetite U.S. consumers have for these products, Wal-Mart has really upped the product presentation game recently within stores I've seen in my area. My guess is that it will only get more intense as Wal-Mart tries to strike at the heart of Best Buy.

When Best Buy Inc. (NYSE: BBY), Circuit City Stores Inc. (NYSE: CC) and Wal-Mart Stores Inc. (NYSE: WMT) are all stacked up together, which one comes out on top? Well, it depends on how you phrase the question: Are we talking solely prices here, or customer service? The pricing angle can be debated all day long. When it comes to service though, my experience is very similar to the conclusion that this article states: Best Buy is king.

Target Corp. (NYSE: TGT), although a much cleaner and brighter location in which to shop, seems to have a weak schedule in the consumer electronics department. Most weeks, I roam into many retail chain locations just to walk around and observe. In many cases, Target seems well-stocked when it comes to checkout personnel, but not if you have questions about a flat-panel television. At Circuit City, its tarnished reputation is well-deserved: It's hard to just find anyone to help you.

And Wal-Mart? The world's largest retailer has made strides to really improve the consumer electronics sections in its stores. The customer service, however, is a completely separate story. If I step into a Best Buy, there's a 99% chance that I will be greeted by a security guard manning the front door, and will be asked at least four times within five minutes if I need help.

While Wal-Mart may have slightly better prices on many consumer electronics items, is that all that matters? Of course not. I give Wal-Mart props for making large strides in product presentation, though. Chris Denove of J.D. Power and Associates says that "Across many industries, we've seen that the retailers that grow customer-service ratings the fastest have greater sales growth." If Wal-Mart wants to try and really compete with Best Buy's winning combination of price and service, it best listen to that advice. Target -- it's also time to step it up on your end. What are you waiting for?

Best Buy Inc.'s (NYSE: BBY) Chief Operating Officer made a pretty strong pledge this week. Brian Dunn suggested that the largest consumer electronics retailer in the U.S. would double its sales to $80 billion within five years. This has an eerie air about it, as it sounds much like Dell, Inc. (NASDAQ: DELL) then-CEO Kevin Rollins many years ago. While Dell's ambitious goal didn't really pan out nearly as nice, Best Buy has a much better proposition to get to its goal.

Dunn's announcement at the retailer's annual shareholder's meeting this week was backed up by the fact that Best Buy has already doubled in size from 2003 to 2008. Its sales went from $20 billion to $40 billion in that five-year period. Keep in mind that one of Best Buy's chief competitors, Circuit City Stores, Inc. (NYSE: CC), is basically on the ropes hanging on for dear life. Wal-Mart Stores, Inc. (NYSE: WMT) is Best Buy's largest competitor, but it doesn't carry near the breadth of actual consumer electronic products that Best Buy does. This positioning still leaves Best Buy free to navigate to $80 billion by 2013. But, doubling every five years is no easy task, and especially in the consumer spending environment we're in now.

What is fascinating is that Best Buy apparently controls only about 20% of the consumer electronics market, and about 30% of retail PC sales in the U.S. Combine those low numbers with Best Buy's very aggressive international expansion and partnerships and it's easy to see that $80 billion in annual sales is already being attacked. Will it get there? We'll be checking -- all the way to 2013.

Welcome to the 53rd installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.

In this week's Wal-Mart Weekly, I'll be looking at Wal-Mart Stores Inc. (NYSE: WMT) positioning in the consumer electronics category. Wal-Mart has always served customers looking for the latest television sets to iPods to home theater systems, but generally has not focused in on the 'ministore' concept for merchandising these products.

When visiting a local Wal-Mart Supercenter this week, I was rather stunned to find a Best Buy Inc. (NYSE: BBY) type of appearance in Wal-Mart's consumer electronics department. In fact, the new planogram and merchandising arrangement reminded me of -- Best Buy itself.

According to a recent report by BIGresearch, consumer electronics retailer Best Buy, Inc. (NYSE: BBY) continues to be the leading destination for consumer electronics purchases in the U.S. for consumers buying such products. Not that this is a huge surprise, but Best Buy is handily beating lagging competitor Circuit City Stores, Inc. (NYSE: CC) and the world's largest overall retailer, Wal-Mart Stores, Inc. (NYSE: WMT).

BIGresearch's consumer survey indicated that 31% of respondents chose Best Buy as the first chain on their list when seeking consumer electronics purchases. Wal-Mart had a mind share of about 17.6% and Circuit City followed at 7.5%. It was interesting to see that Target Corp. (NYSE: TGT) sat at only 2.2% as well. Although Target made huge strides in 2007 as the destination for "cheap chic" in many retail categories, its consumer electronics merchandising and selection is easily what I consider the bottom of the barrel among national retailers. In fact, I'm surprised it's been allowed to fall into such disrepair from what I've seen.

Best Buy's magic formula is this: a pod-like, sectionalized approach to merchandising, an enormous selection in most cases, pricing that generally is perceived as being the best in most cases, its use of "instant rebates" to create demand and price perception and overall navigation of its stores, which are anything but cluttered. One thing I've noticed is that Wal-Mart is coming on strong lately with its display and merchandising of flat-panel televisions and home theater equipment, so it's not resting -- and probably wants to catch up to Best Buy as fast as it can. Watching the race will be interesting. As for Target and Circuit City, we'll continue to be bored.

Best Buy Inc. (NYSE: BBY), the consumer electronics retailer whose shares have slumped more than 12% this year, confirmed Wall Street's growing fears about consumer spending and cut its earnings outlook.

The Richfield, MN company expects fiscal 2008 earnings of $3.05 to $3.10, down from previous guidance of $3.10 to $3.20. Analysts expected profit of $3.17. Comparable stores sales are expected to rise 2.5 to 3%, below the company's previous forecast of a 4% increase. Fourth quarter same-store sales are expect to "decline modestly" in the fiscal fourth quarter, reflecting broader economy.

"Our December revenue results were in line with our expectations. Soft domestic customer traffic in January, coupled with our near-term outlook, now indicate that our fourth-quarter revenue will fall short of our planned targets," Brad Anderson, vice chairman and chief executive officer of Best Buy, said in a press release.

The company plans to open 130 to 160 new stores during its 2009 fiscal year, increasing its total retail square footage by about 10% to 51 million square feet. In addition, it plans "to bring more than 12,000 new retail management, sales and services positions to communities in its markets." Last year, rival Circuit City Stores Inc. (NYSE: CC) came under fire for firing 3,400 workers who were "paid well above the market-based salary range for their role."

Look for both Best Buy and Circuit City to discount like demons to lure consumers back into their stores. Maybe I'll pick up the plasma screen I've been eying.

Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

Phillip Schoonover's performance as Circuit City Stores Inc (NYSE: CC) CEO has not been terrific. Last March he canned 3,400 of the highest paid people in the company -- many of which were top sales people who took their customers to Best Buy (NYSE: BBY). Circuit City's financial performance has faltered and its stock has lost 80% of its value in the last year.

As I posted here, I can't understand why Schoonover continues to occupy his position as CEO. A Circuit City spokesman denies a rumor I received this morning from an anonymous tip via e-mail suggesting that Circuit City's stockholders hounded the board into agreeing -- Schoonover will be out by the end of this month, the tipster alleges. Two e-mails from different addresses, which apparently were fake, contained the rumor. The senders didn't identify themselves. I called the company and the two executives mentioned in the e-mail for comment.

Here's one of the e-mails:

MoneyCNN reports that Circuit City Stores (NYSE: CC) lost 64 cents a share and a sales dropped 3.1%. Circuit City CEO Philip Schoonover said: "We underestimated the financial impact from the disruption of our transformation work."

Schoonover is clueless about his "transformation work." As I posted earlier this year, last March Circuit City laid off 3,400 workers experienced and higher paid workers and replaced them with lower paid ones. Customers who liked the knowledgeable sales staff followed them to Best Buy (NYSE: BBY) which reported that its third quarter profits and sales beat estimates.

Schoonover thought that he could lower his costs and keep sales strong. Now it's time for Circuit City's board to complete its "transformation work" by canning Schoonover.

Update: Circuit City stock is down 22% this morning and 73% since March when it announced its 3,400 person lay off.

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Best Buy or Circuit City securities.

Forget Fake Steve Jobs. The fake iPhone is here. According to Bloomberg, there is the beginning of a booming market for counterfeit Apple (NASDAQ: AAPL) iPhones in Taiwan and China. "With a touch-screen and Apple Inc.'s logo on the back, the iClones look just like the real thing," the story says.

Apple will probably not offer the iPhone in Asia until next year.

The news points out the Chinese dexterity in stealing consumers electronics designs and it is a significant threat to Apple. China has the world's largest cellphone market and China Mobile (NYSE: CHL) is the world's largest cellphone company. And, the phones are being sold into markets including Australia and the U.S.

The fake phones have two advantages. First, they are less expensive than iPhones. Second, they can work on networks outside AT&T (NYSE: T), which currently has the U.S. exclusive for the hot handset.

Steve Jobs may want to take a look over at Microsoft (NASDAQ: MSFT), which claims that about 85% of the copies of Windows sold in China are counterfeit. That represents hundreds of millions of dollars in lost revenue, perhaps more.

Now, it's Apple's turn to fight the pirates.

Douglas A. McIntyre is a partner at 24/7 Wall St.

One of the largest increases in short interest among NYSE traded stocks was seen in Best Buy (NYSE: BBY). Shares short rose by 22.3 million from July 13 to August 15, hitting 68.7 million. As of three days ago, shares in the retailer were down 8% for the month.

Investors are increasingly concerned about Best Buy's competition; Wal-Mart's (NYSE: WMT) consumer electronics business continues to grow, as does the success of Amazon.com (NASDAQ: AMZN) in the same business. Forbes recently wrote that Best Buy first-quarter results "missed the Street's forecasts as profits were dampened by competition that undercut margins." The demise of Circuit City (NYSE: CC) also worries Wall Street. Radio Shack's (NYSE: RSH) sales numbers were also awful in the last quarter.

Best Buy reaffirmed its annual sales and earnings targets during an analyst meeting last month, but there must be a large number of skeptics. Best Buy trades at only $44, near its 52-week low and well down from the high of $58.49.

It would appear that no one is inclined to believe Best Buy management right now and the shorts are taking advantage of that.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Earlier this morning, Best Buy Co Inc (NYSE: BBY) let investors and analysts know that even it was not immune to a slowdown in consumer spending. The company reported a nearly 18% drop in Q1 income, reporting Q1 EPS of 39c (vs. Reuters consensus of 50c) and Q1 revenue of $7.93B (vs. Reuters consensus of $7.83B). As a result, the company cut its fiscal-year earnings forecast, and now sees FY08 EPS of $2.95-$3.15 (vs. Reuters consensus of $3.16), down from April's forecast of $3.10-$3.25 per share. Shares of the retailer fell 5% from Monday's closing price of $48.01 to open at $45.61.

Best Buy's disappointing earnings may not be a good sign for retail competitors like Tweeter Home Entertainment Group Inc (NASDAQ: TWTR) - Tweeter filed for bankruptcy last week - and Circuit City Stores Inc (NYSE: CC). Analysts believe the companies are likely to face pressure this year from falling prices of flat-screen TVs and increased competition from other retailers like Wal-Mart Stores Inc (NYSE: WMT) and Costco Wholesale Corporation (NASDAQ: COST) that are increasing their consumer electronics offerings. This morning, following Best Buy's earnings report, Circuit City shares dropped 2.6%; the company is scheduled to report its own earnings Wednesday morning.

Despite a challenging environment, analysts believe Best Buy remains the best-positioned in the consumer electronics segment. Executives, too, are optomistic about the second half of the year, expecting "materially better sales" in home theater and digital imaging, as well as with the company's Geek Squad service. Executives expect flat panels, notebooks and gaming will remain "very appealing." Additionally, the company is planning to expand Apple Inc's (NASDAQ: AAPL) store-within-a-store concept, and anticipates to have just under 300 of these by the end of the year.

While Best Buy's performance and expansion have helped it in this area until now, let's hope that CEO Brad Anderson's comment that the company's strategy is consistent with the long-term results the company hopes to achieve, even if Q1 results may not have shown it, holds true.

Taser International Inc. (NASDAQ:TASR) today reported strong fourth quarter results, squeezing the short-sellers that have made the stun-gun maker one of their favorite targets.

Net income was $2.3 million, or 4 cents per share, compared with $179,126, or break even, a year earlier, the company said. Revenue soared 53 percent to $19.3 million. Analysts were expecting profit of 4 cents on revenue of $19.2 million, according to Thomson Financial My colleague Melly Alazraki gives a good overview of the history of this company's history here.

Taser has long been a favorite of short-sellers who hold about 11 million shares out of a float of 56.4 milllon, according to Bloomberg News. Shares of the Scottsdale, Ariz.-based company, which are down about 17 percent over the past year, were up about 4 percent in trading today.

The company continues to attract law enforcement customers and is moving into the consumer market and introduced the C2 "personal protector" at last month's consumer electronics show in Las Vegas which comes in vibrant colors including pink. It begins shipping in the second quarter.

Also check out some other earnings reports that we're following, and let us know what you're expecting.