Circuit City Stores, Inc. (CC)

Stromprophet (< 20) Submitted: 3/20/08 1:35 PM

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You need to look at their quarterly report again. They are not LOADED with cash. Actual book value is less than 1.7 Billion. Most of their assets are not actually cash, it's illiquid.

They had problems BEFORE the consumer was getting squeezed all the way back in early 2007 when gas prices were low, a credit crunch wasn't on, and home values hadn't really plummeted yet.

The fact is they still have shrinking margins, are paying management of stores more money, building more stores, all while running a negative income. Even as a take over target they aren't going to return an investment, the only suitor is BB, and likely BB would close many of the CC stores so they won't value the company at real equity.

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Troy2008 (99.13) Submitted: 4/19/08 3:08 PM

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I disagree strongly. Have you ever been in a CC? Also they're retail and losing money. We're entering bad times here with the dollar, spending, saving, gas, food, jobs,housing etc. etc. etc. Short interest is now at 26% and increasing, MM will keep forcing this stock down to the floor as the company bleeds cash faster than they can earn it. The forward PE is - 2.80 They lost over 300 million in the last 12 months and I think this year will be worse. When the 86% of shares owned by institutions start to sell it's going to be over for CC. Some short lived pops will allow institutions to bail out and just like K-Mart they will fail, eventually. IMO.

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TheParadox (83.12) Submitted: 5/06/08 11:44 AM

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I do believe 296 Million in cash, and 1.5 Billion in inventory. a ratio of .197

Walmart's ratio is .158
BestBuy's ratio is .305
BedBathBeyond's ratio is .138

The amount of Cash in terms of inventory means little. I think what matters is the outlook of the consumer. If i lost my house, i wouldn't be spending my money on discretionary objects. Troy is correct, and the general feel of the market says so too. Things might appear differently if things turn around... but timing the market is dangerous, and BBI has not a clue what they are doing.

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peteriehl (98.92) Submitted: 5/06/08 4:35 PM

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Retailers in general are going to be hurting for at least the rest of the year. That alone should encourage people as a whole to get away from companies like CC, if not give them the ol' thumbs down.

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ScotchIrishPrinc (37.12) Submitted: 5/09/08 12:13 PM

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Um, the current idiot of a CEO lead the company from around $4/share all the way up to $30/share, and has now driven it back down to the $4-5 range. I guess he decided that the next CEO should pick up where he had first entered, almost like Phil Shoonover's(sp*) tenure didn't really happen at all. And really, who can argue with that?



Add to that the fact that they consistently lay off their best workers every few years (see switch from commission to hourly, and last years gaff), they entered the PC service marker a few years too late, and who's only profit in TV's is slowly being sipped off by Wal-Mart and CostCo (not to mention their older stories are hidious and in bad places, where as Best Buy is usually much nicer, and just a few blocks down in a better location) and you have failure written all over this company.

Let them be bought by Blockbuster, and let the two wallow in their shortsightedness, dreaming of years past when they were once the kings of their respected markets...

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