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Best Buy Should Take Over RadioShack: Edwards

Beleaguered Best Buy landed on the Fast Money trader radar with shares swooning in tandem with rival Radio Shack.

Investors ran for the exits after Radio Shack's preview of Q4 results called the future of electronics retailing into question, broadly.

Radio Shack said it earned 11 cents to 13 cents per share for the quarter that ended in December. That's down from 51 cents per share a year earlier. And it's less than half the 36 cents expected on average by analysts surveyed by FactSet.

Portfolio managers are growing ever more worried that brick and mortar electronic stores are losing out to Amazon and other online sites.

“Best Buy is an ugly chart,” says trader Patty Edwards. “Best Buy stores are too big –they know that.

Edwards says they have to do something. "I think they should takeover Radio Shack.”

If that were to happen, competition would diminish and Best Buy would be able to close some of its big box stores and replace them with locations that have a much smaller footprint.

However, if you're looking to play the space for a trade, Edwards says go ahead - take a shot but "don't spend a lot of money or a lot of time." She thinks there are much better places to put money to work than here.

Want a trading idea? "I'd much rather tip toe into Nike ," she says.

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Trader disclosure: On January 31, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long AXP; Terranova is long JOY; Terranova is long MCD; Terranova is long OXY; Terranova is long IBM; Terranova is long SU ; Terranova is long TRLG; Terranova is long CNX; Terranova is long SBUX; Terranova is long SNDK; Terranova is long GOOG; Terranova is long MA; Terranova is long UNG April $5 puts; Terranova is long AAPL Feb 430 puts; Terranova is short AAPL put spread; Terranova is short AAPL Feb 440 puts; Kelly is long GLD; Kelly is long XLF; Kelly is long KRE; Kelly is long TLT; Karabell is long IBM; Karabell is long FCX; Seymour owns VIP

For Patty Edwards
Trutina Financial is long GLD
Trutina Financial is long MSFT
Trutina Financial is long INTC
Trutina Financial is long XOM
Trutina Financial is long UPS
Trutina Financial is long VLO
Trutina Financial is long MAT
Trutina Financial is long AMZN
Trutina Financial is long QCOM
Trutina Financial is long NKE
Trutina Financial is long SLB

For Zach Karabell
River Twice owns AAPL calls
River Twice is short XLF
River Twice is long IBM
River Twice is long SAN
River Twice is long BRCM

For Dan Dicker
Dicker is long SLB
Dicker is long WFT
Dicker is long HP

For Tim Seymour
Triogem owns MBT

For George Davis
No disclosures

For Colin Gillis
(AMZN): Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Amazon within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Amazon.

For Faisel Khan
Thelma M Bardouille, Research Assistant, holds a long position in the shares of Chevron Corp.

Thelma Bardouille, Research Assistant, holds a long position in the securities of Chevron.

Thelma Bardouille, Research Assistant, received compensation from Chevron in the past 12 months.

Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Valero Energy Corp.

Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Exxon Mobil Corp, ConocoPhillips, Valero Energy Corp.

Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Exxon Mobil Corp, ConocoPhillips.

Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Exxon Mobil Corp, Chevron, ConocoPhillips, Valero Energy Corp in the past 12 months.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Exxon Mobil Corp, ConocoPhillips, Valero Energy Corp.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Exxon Mobil Corp, Chevron, ConocoPhillips, Valero Energy Corp.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Exxon Mobil Corp, Chevron, ConocoPhillips, Valero Energy Corp.

Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.

For Sean McGowan
(UA): The research analyst and research associate have received compensation based upon various factors, including quality of research, investor client feedback, and the Firm’s overall revenues, which includes investment banking revenues.

For Steve Weiss
No disclosure





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