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$0.10 0.00 (0.00%)
11/10/2008 4:08 PM

Circuit City Stores, Inc. (CC)

CAPS Rating:
*

The Company is a retailer of consumer electronics, home office products, entertainment software and related services.

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Avatar FIworkEquityplay (< 20) Submitted: 1/01/08 4:44 PM : Outperform Start Price: $4.20 CC Score: -55.93

This stock goes through these phases all the time as the economy begins to suffer. I am not a huge fan of Circuit City, I will even say Best Buy is much better. However, not much has changed over the last year and this is 1/5th the price. I wonder what Price to Book Value is...the bad news is priced in already...this thing will go up over time. It WILL NOT go out of business which is what it is priced to do now...

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Avatar billddrummer (82.61) Submitted: 1/02/08 12:53 PM

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This isn't a phase. The company hasn't met expectations for 6 consecutive quarters. P/BV isn't a meaningful statistic for a company with no hard assets. If they had some undervalued real estate or significant intellectual assets that would be one thing. But only 5 stores are company owned, and the distribution and service facilities are also leased. They've been attempting to implement this POS-inventory control system for 3 years, and it hasn't been completed yet. Many of the stores are in poor locations. Premium product lines aren't available. And the sales staff is clueless.

So where's the hidden value you speak of?

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