Circuit City Stores, Inc. (CC)

valunvesthere (< 20) Submitted: 12/27/07 7:05 PM

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KatWoman50,

Try, Circuitcity.com

From Valunvesthere.

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KatWoman50 (95.17) Submitted: 12/27/07 9:58 PM

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Thank you for reccomending the website but my impression of Circuit City is based on going in the stores. The site is a lot more inviting than the stores and that's not good for a retailer. Sometimes a customer wants to actually touch the product and Best Buy is a FAR superior store to go and handle the goods. They also have a good website, loyalty program and good prices. If I buy something on their website, I can take it back or get it serviced in the store.

Several years ago they weren't very honest with their credit card promotions so I quit shopping there, but I've heard they've fixed those issues and their prices are good enough that I don't need to go there for the credit come-ons.

Take a look at CONN. They're a regional electronics and appliance store with room to grow. They serve their credit in-house and have been unfairly beaten down by investors running from anything having to do with finance. It's an advantage for them to service their own credit and they only have a 3% default rate... much lower than most. Both the retail and credit divisions make profits.

I'll keep my underperform pick until I see some sort of change of management. Unhappy employees don't make for a profitable business.

Kat

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KatWoman50 (95.17) Submitted: 3/28/08 12:02 PM

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POSTED AT 3/28/2008 The stock CC has paid out a dividend of $0.04. The starting price for your pick has been adjusted to $4.28

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dejonese (33.71) Submitted: 4/04/08 5:23 PM

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I agree with you about miss-management. They have squandered buying power and have the marketing innuendo of a 3 year old. BUT... company fundamentals are solid. With recent shareholder clamoring, change is bound to come. They have enough cash to burn through for at least 3-4 years, and will easily get credit facilities due to asset holdings, so BK is out of the picture for the foreseeable future.
So the real question is, what will CC management do to make their parent business perform as well as an offspring of theirs - CARMAX? Considering the past and the anger of the shareholders, change is bound to come, as it has before.

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Fallen001 (22.39) Submitted: 4/05/08 11:46 AM

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Won't happen ... The downturn will flush this t.u.r.d. ... Too late for a shareholder intervention ... They've pissed off every employee that had a clue and are now suffering for it with store closings & lost revenue ... When those pissed off employees go back home, they tell everyone about what a s.h.i.t.t.y. dump that place is (reminds me of a gulag when I go in there) & word of mouth is still the most powerful medium of advertisement ...

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KatWoman50 (95.17) Submitted: 4/14/08 12:27 PM

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CC jumped over 50% on announcement of hostile takeover bid by Blockbuster. Shares opened at $6 today and are now trading at $5. Blockbuster says they will offer between $6 and $8. Blockbuster fell 10% on concern of dilution and downgrade so we'll see if Mr. Market believes this will go through.

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coeus248 (< 20) Submitted: 4/14/08 4:15 PM

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You can't base a prediction on your individual experience you have in a local store. The issue with CC is that across the country the level of accountability really differs. Some stores have horrible customer service while other's have a dedicated customer base that will never go anywhere else. I always get a kick when someone bases a prediction on whether or not they felt they got a raw deal. Most people in that case are mad because a store didn't just roll over and do what they wanted them to do. Trying doing some research first. Have you looked at their new concept stores? It would be one thing if we were talking about CompUSA a few months ago. CC is the No.2 electronics retailer. It's like saying just because GM is number two behind Toyota and not doing as well as they could be they are going out of business.

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dejonese (33.71) Submitted: 4/15/08 2:57 PM

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MAN, I kept telling everyone around me that someone would make a $7 offer for CC. NEVER would have thought it would be BBI. If I was a blockbuster shareholder I'd be screaming bloody hell!! What a stupid idea. I don't think this particular deal will go through because the synergy will never be there imo.
HOWEVER, here's an idea: SEARS!!!! Lampert is looking to expand and has SEVERAL BILLION approved by the board of SHLD to do so. Sears lacks a strong electronics presence, CC lacks serious capital backing. If they combine supply chains alone, they'll both save a ton. They are compatible business models also, with the exception that SHLD has more of a focus on long term assets such as real-estate. I'd guess the offer would range $10-12!!
Hope I'm wrong though, I just convinced my girlfriend to buy BBY, and this kind of merger would definitely put a damper in their growth.

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