Maybe the old saying is true for Rex Stores
Rex reported a 28% increase in earnings per share to $0.32, although its operating income plunged 42%. The company made a chunk of change in investment income from "synthetic fuel investments" that helped boost bottom-line results.
Maybe Rex Stores should shift its focus to the synthetic fuel business because the electronics and appliances it offers in its 245 stores scattered across 37 states don't seem to be moving. The market to sell these items is so cutthroat that other companies like Wal-Mart
The sobering truth is that people do not want to be limited in their shopping experience. With more and more companies offering a one-stop shopping environment, the retailers that merchandise the best will most definitely come out on top.
I agree with previous Foolish comments in Best Buy Looks Unbeatable, but there is also plenty of room in the market for the aforementioned group of companies to steal a decent piece of the pie. However, Rex Stores doesn't appear to have the necessary foundation to eke out market share.
Rex has neither rock-solid fundamentals nor a competitive advantage, giving it all of the momentum of a tortoise lying in the hot sun on a beach. In this retail scenario, if there were a fabled race, the company would stand no chance of winning by a hair.
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Fool contributor Phil Wohl spent more than 12 years on Wall Street and now concentrates his writing on more fictional characters. He has no stake in any firm mentioned above.