Circuit City stock: buy low?

[bigred]

Been in the $4 range for awhile now.

It's either going to ultimately go up a healthy % or crash altogether. I don't disregard the crash possibility, but the 2d largest outlet of its kind......I dunno somehow I remain tempted to think bargain despite the choppy forecasts.....am I nuts

[JoeEllison]

Sounds like a bargain. The government will toss them a liferaft for the short-term, and they'll no doubt rebound once some fiscally responsible Democrat is back in office. Also, I'm going to buy some high end stuff soon, so look for a "bump" in the next 30 days.

[The Central Scrutinizer]

Been in the $4 range for awhile now.

It's either going to ultimately go up a healthy % or crash altogether. I don't disregard the crash possibility, but the 2d largest outlet of its kind......I dunno somehow I remain tempted to think bargain despite the choppy forecasts.....am I nuts

How do you know? $4 might be over priced. It may be fairly priced, and trade in that range for the next 20 years. Who knows?

Whether a stock is a bargain has nothing to do with its price.

[Spindrift]

If you want it to tank guaranteed, just give me the money to purchase 100 shares. I am the Cooler when it comes to picking stocks. No matter what I buy or when, it is guaranteed the stock will crash and a good percentage of time the companies go out of business.

[Skeptic Ginger]

My sense is the store will be bought out or go under soon. In this area they are not doing well against Best Buy. I've seen it a number of times before. A store begins to have the feel of obsolescence then it goes under. One of the few exceptions is RadioShack and my son tells me it is because they became a cell phone company outlet and that accounts for much of their business.

[CriticalThanking]

My sense is the store will be bought out or go under soon. In this area they are not doing well against Best Buy. I've seen it a number of times before. A store begins to have the feel of obsolescence then it goes under. One of the few exceptions is RadioShack and my son tells me it is because they became a cell phone company outlet and that accounts for much of their business.
IMO Skeptigirl is likely the closest to the truth. Circuit City may be #2, but they have been in the tank for a while and getting worse. They have been the subject of a case study comparing them to Best Buy. While BB was staffing up, CC cut customer service, laid off all people making high money (while allowing some to reapply as lower-paid employees), etc. Their sales reflected the customer (and salesperson) reaction.

I used to work for a competitor that had considered buying CC years ago. Our due diligence led us to back out of the deal and let them fall further to get a better price later. They might be looking to go after the CC wreckage now if they hadn't gone bust first. :p

As for a government bailout, I can't see that. They are small in terms of employment and (IMO) ripple effect on the economy. It is a commodity market with players like WalMart in on large chunks of the product space such as TVs. It is a horribly low-margin business.

Right now I'd rather throw my stock money at a different losing company.

CT

[bigred]

Agree on both counts. Do not discount the buyout/upswing though.

And despite their numerous screwups, I'm still amazed at the diff between them and Best Buy success-wise in recent years....I've gone into both numerous times and you could flip a coin IMO. Similar stuff, similar service (lame), similar prices etc.

[The Central Scrutinizer]

Agree on both counts. Do not discount the buyout/upswing though.

Also don't discount the "bankruptcy/downswing to zero" either.

[Skeptic Ginger]

Oh my Lord!!!! TCS agrees with me. ;)

[Huh-What?]

If you want it to tank guaranteed, just give me the money to purchase 100 shares. I am the Cooler when it comes to picking stocks. No matter what I buy or when, it is guaranteed the stock will crash and a good percentage of time the companies go out of business.

Let me know what you are buying next I need to short some stocks. :D

[bpesta22]

Three screaming buys:

AKAM

CHINA

MNTG

[JonnyFive]

As for a government bailout, I can't see that. They are small in terms of employment and (IMO) ripple effect on the economy. It is a commodity market with players like WalMart in on large chunks of the product space such as TVs. It is a horribly low-margin business.

There is definitely no way in hell the feds will bail Circuit City out of anything. They didn't bail CompUSA out either, and they're all but gone now.

As an alternative reading of this thread title, I suggest you look into buying some of Circuit City's stock of products if their financial troubles continue and they go into fire sale mode.

[WildCat]

The government will toss them a liferaft for the short-term,
No, they won't. Why on earth would you think they would? When has a retail store ever been bailed out by the government?

[bigred]

Yeah wondering that myself.

CC just got knocked out of the S&P 500 btw. Wonder if it'll impact-?

[littlehulkster]

It's too bad, because Circuit City are the only ones besides Radioshack (And the local Radioshack is very small) who sell real nuts and bolts electronics equipment. Best Buy can sell me a new speaker, but they can't sell me a 3 ohm driver.

[CriticalThanking]

littlehulkster - Is there a Fry's electronics near you?

CT

[carlvs]

littlehulkster - Is there a Fry's electronics near you?

More to the point - are you sure he hasn't got the two stores mixed up?

(because that doesn't sound like any Circuit City store we have here in the Chicago area, but it does match our area's Fry's - which incidentally could fit the volume of the nearby BB & CC and still have some space left over - out in the suburb of Downers Grove ...)

[Gagglegnash]

Hi
Sounds like a bargain. The government will toss them a liferaft for the short-term, and they'll no doubt rebound once some fiscally responsible Democrat is back in office. Also, I'm going to buy some high end stuff soon, so look for a "bump" in the next 30 days.

First: It's Circuit City, not a major manufacturer, so I don't think they'll be getting any governmental money.

Second: The problem at CC is THEIR president, not ours.

This, from MSNBC Business:

Circuit City to fire more than 3,400 workers (http://www.msnbc.msn.com/id/17837882/)
Retailer will replace them with new employees paid at market-based rate
March. 28, 2007
The electronics retailer, facing larger competitors and falling sales, said Wednesday that it would lay off about 3,400 store workers — immediately — and replace them with lower-paid new hires as soon as possible.

The laid-off workers, about 8 percent of the company’s total work force, would get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said.


March, 2007, right? From Bigcharts.com (http://bigcharts.marketwatch.com/)
http://bigcharts.marketwatch.com/charts/big.chart?symb=CC&compidx=aaaaa%3A0&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=1227&style=320&time=9&freq=1&nosettings=1&rand=5220&mocktick=1&rand=4045 (http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CC&sid=1227&o_symb=CC&freq=1&time=9)

So, they had a bad December and started thrashing around for a way to improve their bottom line.

Essentially, they fired their best people and replaced them with guys off the street, expecting to save money on paychecks and forgetting why the people they fired were paid more.

When you go to a place to drop a grand on a TV, you want to talk to someone who knows more than, "do you want fries with that."

People stopped going there. That's why the stock's at $4 now.

There's better investments out there.

[JoeEllison]

Since my last post, I actually went into a Circuit City. That place blows.

[JonnyFive]

Since my last post, I actually went into a Circuit City. That place blows.

Yeah, it really does. The ones near me have a pretty crappy selection of stuff - I'd much rather go to Best Buy or, working in downtown Manhattan, J&R.

To be fair, I did buy a copy of "Quake 4" from Circuit City about a month ago.

[bigred]

Yeah, it really does. The ones near me have a pretty crappy selection of stuff - I'd much rather go to Best Buy

This is what gets me: CC and BB are like freakin twins in most respects. I don't get how or why people would like one over the other.

[WildCat]

This is what gets me: CC and BB are like freakin twins in most respects. I don't get how or why people would like one over the other.
Absolutely true! If I have a big-ticket electronic item to buy, I go to Abt. They actually have people there who know about the product, and a selection you could never find at BB or CC.

BB is good for buying blank media, and that's about it.

[BenBurch]

Now, this was a decade ago, but I had some direct experience with the Circuit City management structure while developing Zenith's part of the failed DivX video distribution system for them.

I think that unless there has been a total shakeup of their corporate culture, they just are not able to respond to anything that does not fit their pre-conceived notions, and hence, they will continue to fail.

[BenBurch]

Absolutely true! If I have a big-ticket electronic item to buy, I go to Abt. They actually have people there who know about the product, and a selection you could never find at BB or CC.

BB is good for buying blank media, and that's about it.

Isn't Abt just Chicago-area only?

[JonnyFive]

This is what gets me: CC and BB are like freakin twins in most respects. I don't get how or why people would like one over the other.

Because the Best Buys in the area generally at least have an adequate selection of crazy, crazy things like "high definition movies." I agree that they're very similar, but the local Circuit Cities aren't doing so great with the whole "having things I'm looking for" deal.

Neither is a good place to buy headphones or any computer parts, however. They have the crappiest selection, and don't carry a lot of the decent brands of headphones.

[BenBurch]

Because the Best Buys in the area generally at least have an adequate selection of crazy, crazy things like "high definition movies." I agree that they're very similar, but the local Circuit Cities aren't doing so great with the whole "having things I'm looking for" deal.

Neither is a good place to buy headphones or any computer parts, however. They have the crappiest selection, and don't carry a lot of the decent brands of headphones.

I buy almost everything online now. Not groceries. Not pet food. But except for a replacement fan or a battery, I have not been into a brick and mortar store to buy any technology in literally years.

[JoeEllison]

I buy almost everything online now. Not groceries. Not pet food. But except for a replacement fan or a battery, I have not been into a brick and mortar store to buy any technology in literally years.

Really? What about a 40" LCD TV and high-end surround system? That's what I'm headed to Best Buy for. Samsung makes a "Best Buy exclusive" model that blows away the competition for under $1500. :D

[BenBurch]

Really? What about a 40" LCD TV and high-end surround system? That's what I'm headed to Best Buy for. Samsung makes a "Best Buy exclusive" model that blows away the competition for under $1500. :D

I am simply not a TV watcher. I own two sets from my days at Zenith, and look at TV about once a week for 15 minutes or so. I just don't like it.

:-)

So, nothing I've bought online has been in that class of equipment. I have bought Macs and PCs online though. And a couch.

[The Central Scrutinizer]

Really? What about a 40" LCD TV and high-end surround system? That's what I'm headed to Best Buy for. Samsung makes a "Best Buy exclusive" model that blows away the competition for under $1500. :D

Best Buy doesn't sell anything "high end".

[WildCat]

Isn't Abt just Chicago-area only?
The physical store is, but they also have a web store and they will ship anywhere in the country. Kind of like J&R in NYC.

But the store is cool, they have a 5,000lb ball of granite that floats on a bit of water in a bowl, you can spin it around with your hand. :p

And a giant fish tank, and a 100" plasma TV...

[JonnyFive]

Really? What about a 40" LCD TV and high-end surround system? That's what I'm headed to Best Buy for. Samsung makes a "Best Buy exclusive" model that blows away the competition for under $1500. :D

Look at it in the store, buy it online. Bought a 37" LCD TV about a year ago and paid less for it online plus shipping than it would've cost from Best Buy, and I didn't have to drive it home.

What model TV is it, anyway?

[JoeEllison]

Look at it in the store, buy it online. Bought a 37" LCD TV about a year ago and paid less for it online plus shipping than it would've cost from Best Buy, and I didn't have to drive it home.

What model TV is it, anyway?

It is a Samsung LNT-4066...

[JonnyFive]

It is a Samsung LNT-4066...

The "Best Buy" version of the LNT-4065, if my research is correct. What are the adding to it to make it special for BB, anyway?

The Samsung TVs are quite nice. I used to have an old CRT rear projection HDTV by them, but replaced it with a 37" Westinghouse LCD panel.

[skepticalbeliever]

Why not just play the stock through options. That's what I want to get in to once I have more money. I would buy a call for the duration in which I expected it to rise.

If I were going to invest in the 4$-6$ club of stocks, I would look at etrade and country wide financial. The spread on the CFC deal is 25 points. I'm thinking of jumping in to that one when if it comes down in price.

[JoeEllison]

The "Best Buy" version of the LNT-4065, if my research is correct. What are the adding to it to make it special for BB, anyway?

The Samsung TVs are quite nice. I used to have an old CRT rear projection HDTV by them, but replaced it with a 37" Westinghouse LCD panel.

The BB version has the brighter-looking glossy screen, instead of the non-reflective matte screen. That's it, but when you are looking between the two screens, it seems like a big difference.

And, I've currently got a Westinghouse 32"... great TV for the money.

[The Central Scrutinizer]

If I were going to invest in the 4$-6$ club of stocks, I would look at etrade and country wide financial.

You might be a little too late for Countrywide.

[bigred]

Why not just play the stock through options. Too "busy" for me. I've neither the time, patience or interest to get into anything more than a simple buy/sell.

[The Central Scrutinizer]

Too "busy" for me. I've neither the time, patience or interest to get into anything more than a simple buy/sell.

What is even easier, is buy/never sell.

[SoBitter]

My little sister works for Circuit City. She has the code to the safe and is allowed to count drawers and make the nightly deposit. Knowing my little sister, she shouldn't have this power. I do not trust the judgment of this company.

[Francesca R]

Why not just play the stock through options. That's what I want to get in to once I have more money. I would buy a call for the duration in which I expected it to rise. Why? Do you think that realised volatility will be higher than implied volatility (which is very high right now)?

[Francesca R]

What is even easier, is buy/never sell.And even easier is "ignore the price of what I'm selling you and buy no matter what."

[JonnyFive]

The BB version has the brighter-looking glossy screen, instead of the non-reflective matte screen. That's it, but when you are looking between the two screens, it seems like a big difference.

And, I've currently got a Westinghouse 32"... great TV for the money.

I gotcha. Was this a limited production run or something? On the website, all I see is the LN-T4071 or some other incremented model.

Yeah, my mother-in-law has a 32" 720p by Westinghouse. My only gripe is that the SD reproduction isn't all that great, and the black levels could be better (but really, they're no worse than a lot of other LCD panels). I looked at a couple pricier models of similar TVs at the time, but they didn't seem worth the extra money.

[JoeEllison]

I gotcha. Was this a limited production run or something? On the website, all I see is the LN-T4071 or some other incremented model.

Yeah, my mother-in-law has a 32" 720p by Westinghouse. My only gripe is that the SD reproduction isn't all that great, and the black levels could be better (but really, they're no worse than a lot of other LCD panels). I looked at a couple pricier models of similar TVs at the time, but they didn't seem worth the extra money.

Ah, it doesn't matter, I'll be buying that LN-T4071 on Friday morning. The local Best Buy dropped the price on it lower than their own website, and by a total of about $600-700 and right into my price range. :D And, I'm going to haggle like crazy, something you can't do online!

[JonnyFive]

Ah, it doesn't matter, I'll be buying that LN-T4071 on Friday morning. The local Best Buy dropped the price on it lower than their own website, and by a total of about $600-700 and right into my price range. :D And, I'm going to haggle like crazy, something you can't do online!

Good point. I try to buy from smaller sites that tend to have lower prices than BB, but good point about the haggling.

Well, enjoy your new TV! At least the whole HD format war is settled now, if that's your thing.

[JoeEllison]

Good point. I try to buy from smaller sites that tend to have lower prices than BB, but good point about the haggling.

Well, enjoy your new TV! At least the whole HD format war is settled now, if that's your thing.

Yeah, as soon as that results in BluRay DVDs for under $30, I might even buy a player!

[JonnyFive]

Yeah, as soon as that results in BluRay DVDs for under $30, I might even buy a player!

We can only hope.

Amazon sells them for around $20 now, which isn't too bad. I lucked out and found some on sale in J&R for $10, but that's extremely uncommon (they had "The Descent" and "Reservoir Dogs" :D). It's still a pisser to have them for $30-$35 in the store. Nuts to that.

Cheapest players are still like $400 too. Computer drives are around $200, which is what I have (TV's also my monitor at home).

[JoeEllison]

You know, I walked into Circuit City again yesterday. They had removed all the prices from the Samsung TVs. Maybe they are going to lower the prices to compete with Best Buy?

[Trantor]

Years ago, Circuit City used to sell some higher end stuff compared to Best Buy. I remember in the mid 90's Circuit City making a point about the fact that they sold some of the higher end Infinity speaker lines, Harmon Kardon amps, and some of the better JBL speakers. When I was searching for a new set of good quality speakers and a new amp, I checked out Circuit City and Best Buy, and Circuit City had the better offerings as far as home audio equipment was concerned. In the end, I didn't buy from either of them, instead prefering a smaller dealer that offered better high end variety.

I think lately they have been trying to imitate the Best Buy formula of success, and they are not doing very well in their effort. Last time I was in Circuit City and Best Buy, doing some comparison shoping for a tv, both stores had about the same stuff in them. The tv that I was looking at was about $200 less at Circuit City, so I bought it there.

[bigred]

I was going to buy a TV at Best Buy but the one I wanted was sold out except for the floor model and they weren't going to budge an inch on the price, so I said f- that and got the same one at CC for less. So pricing isn't the issue. The whole thing (CC) really is odd IMO.

[jimtron]

FWIW, the folks at Motley Fool CAPS don't seem to be too enamored of it:

http://caps.fool.com/Ticker/CC.aspx

[JoeEllison]

Weird, because the pricing at CC is horrible here. You might as well set your cash on fire before shopping there.

[bigred]

er I'm pretty sure prices don't vary from state to state. And their prices are quite competitive.

Does your ex work for CC or something? ;)

[JoeEllison]

Prices can vary from store to store, and between the stores and the online price. The local Best Buy just dropped their price on one TV from $2200 to $1700, the website has it for $2400, and Circuit City is charging $2100.

[skepticalbeliever]

I like best buy. but I'd rather order cameras and TVs from newegg.com, nexttag.com or amazon.

Why spend extra money on the salesperson's comission when you can order something online and save 10% or more?

Look how much the camera prices vary for the same model on nexttag.com. In any store it will cost you 500$ + tax.

http://www.nextag.com/canon-g9/search-html?nxtg=2ce70a1c051c-D8746F75D272AFF5

[Yalius]

Prices can vary from store to store, and between the stores and the online price. The local Best Buy just dropped their price on one TV from $2200 to $1700, the website has it for $2400, and Circuit City is charging $2100.

Can I make a suggestion from personal experience, as long as you're not overly concerned with being disliked by your salesperson?

Get them to give you a quote for the TV, plus their service plan. Haggle on that price, get the best you think they will give, and buy the suggested plan.

Then return the plan, preferably the next day, maybe even at another store.

When they haggle a price, they're going to take the discount out of the TV, not their service plan. You can easily get them to give you $200-$300 better price this way than if you haggle on the price of the TV by itself. And if you do get convinced (hope not!) on the value of their service plan offering, after returning the in-store plan, buy the manufacturer's service plan from the manufacturer's web site.

[a_unique_person]

Why buy CC now, when it's low, when if you wait a few months more, it'll be even lower?

[JoeEllison]

Can I make a suggestion from personal experience, as long as you're not overly concerned with being disliked by your salesperson?

Get them to give you a quote for the TV, plus their service plan. Haggle on that price, get the best you think they will give, and buy the suggested plan.

Then return the plan, preferably the next day, maybe even at another store.

When they haggle a price, they're going to take the discount out of the TV, not their service plan. You can easily get them to give you $200-$300 better price this way than if you haggle on the price of the TV by itself. And if you do get convinced (hope not!) on the value of their service plan offering, after returning the in-store plan, buy the manufacturer's service plan from the manufacturer's web site.No need. I bought my TV this morning. They knocked another $600 off of it today, plus they got me to buy $1200 worth of surround and HD/BluRay player for about $850. :D I got plenty of discount, and NO ONE has that TV for $1100 on the Internet or anywhere else.

[JonnyFive]

No need. I bought my TV this morning. They knocked another $600 off of it today, plus they got me to buy $1200 worth of surround and HD/BluRay player for about $850. :D I got plenty of discount, and NO ONE has that TV for $1100 on the Internet or anywhere else.

Nice.

If you want some cheap HD-DVD discs, Amazon has a bunch on sale for like $14-15. Since you've got a combo format player you could play them, and they look identical to the Blu-Ray versions.

ETA: What kind of sound system, anyway? I'm not so big on the sound system right now, since I live in an apartment and watch a lot of movies at night when my wife and kid are asleep. I bought a decent pair of headphones instead and use the Dolby headphone processing on the computer instead.

[JoeEllison]

Nice.

If you want some cheap HD-DVD discs, Amazon has a bunch on sale for like $14-15. Since you've got a combo format player you could play them, and they look identical to the Blu-Ray versions.

ETA: What kind of sound system, anyway? I'm not so big on the sound system right now, since I live in an apartment and watch a lot of movies at night when my wife and kid are asleep. I bought a decent pair of headphones instead and use the Dolby headphone processing on the computer instead.

I got this one (http://www.samsung.com/us/consumer/detail/detail.do?group=mp3audiovideo&type=hometheater&subtype=hometheatersystems&model_cd=HT-AS720ST/XAA) because it matched the HD player. And, yeah, I thought about the ridiculous sales on the HD-DVD discs when I got my player. :D

[JonnyFive]

I got this one (http://www.samsung.com/us/consumer/detail/detail.do?group=mp3audiovideo&type=hometheater&subtype=hometheatersystems&model_cd=HT-AS720ST/XAA) because it matched the HD player. And, yeah, I thought about the ridiculous sales on the HD-DVD discs when I got my player. :D

I'm still waiting for the "oh crap we have all these stupid discs and Toshiba canned the format" sales at the local places, but Amazon's a pretty good deal for now, and you can find people online selling their discs for cheap.

[bigred]

CC closed at $3.94. With rumours of a buyout looming, I think I'm on it.

[a_unique_person]

CC closed at $3.94. With rumours of a buyout looming, I think I'm on it.

First of all they have to get the finance :cool:

[bigred]

DAMN DAMN DAMN!

I was this close to grabbing it at $3.90 this Fri, but nooo.....

Now w/the takeover talk they've shot up to $5.45 and climbing. There goes my retirement. :cool:

[RecoveringYuppy]

Yeah, I'm in the same boat. I put in a limit order over the weekend to buy at 3.85. The downtrend on their chart had stalled, their market cap was close to their cash on hand, and the move by shareholders to oust the CEO pushed my decision.

[bigred]

I put in an order last night at Fri's closing of $3.90 and knew I was dreaming. :( Oh well; it wasn't going to make or break me either way.

[The Central Scrutinizer]

DAMN DAMN DAMN!

I was this close to grabbing it at $3.90 this Fri, but nooo.....

Now w/the takeover talk they've shot up to $5.45 and climbing. There goes my retirement. :cool:

What value have you placed on the company? How did $3.90/shr compare to your value?

[RecoveringYuppy]

I put in an order last night at Fri's closing of $3.90 and knew I was dreaming. :( Oh well; it wasn't going to make or break me either way.
Wouldn't count on that price being out of the question again. Doesn't seem likely that BB will really be able to pull off this offer.

[bigred]

I'm thinking not, but yeah it closed just under 5 today so who knows....

[bigred]

OK yknow those "I'm with stupid" t-shirts? Someone needs to put on one and I'll come over to stand next to you.

Why? I accidentally placed a market order vs a limit order and got it for the bargain price of $5.63. whoo hooo. :mad:

[The Central Scrutinizer]

As was aluded to earlier, Blockbuster wants to buy Circuit City: http://money.cnn.com/2008/04/14/news/companies/blockbuster_circuitcity.fortune/index.htm?postversion=2008041416

Sort of like the Titanic buying the Lusitania.

[RecoveringYuppy]

Sort of like the Titanic buying the Lusitania.
Doesn't look like too many people believe that deal can happen.

@bigred

Ouch. I'll try to think of that this afternoon to take my mind off getting a tooth drilled.

[The Central Scrutinizer]

I'd say CC is a cigar butt stock at this point.

[TheJim]

Years ago, Circuit City used to sell some higher end stuff compared to Best Buy. I remember in the mid 90's Circuit City making a point about the fact that they sold some of the higher end Infinity speaker lines, Harmon Kardon amps, and some of the better JBL speakers. When I was searching for a new set of good quality speakers and a new amp, I checked out Circuit City and Best Buy, and Circuit City had the better offerings as far as home audio equipment was concerned. In the end, I didn't buy from either of them, instead prefering a smaller dealer that offered better high end variety.

I miss those days, BBY has never carried quility speakers or audio epuipment.

I think lately they have been trying to imitate the Best Buy formula of success, and they are not doing very well in their effort. Last time I was in Circuit City and Best Buy, doing some comparison shoping for a tv, both stores had about the same stuff in them. The tv that I was looking at was about $200 less at Circuit City, so I bought it there.

That is because CC management team is mostly from BBY. The mess that CC finds itself was easily to see when they hired this crew too. They tried to turn CC into BBY but did not realize the backlash of getting rid of at least average sale staff and replacing them with low-cost warranty salespeople. They of course had no chance of pulling this off because they where not the 2nd largest electronic store but 3rd and shrinking behind BBY and Walmart so they where not going to get the price concessions to compete on price. They should have concentrated on the higher end with superior service as BBY can not compete in that market.

[Foolmewunz]

I miss those days, BBY has never carried quility speakers or audio epuipment.



That is because CC management team is mostly from BBY. The mess that CC finds itself was easily to see when they hired this crew too. They tried to turn CC into BBY but did not realize the backlash of getting rid of at least average sale staff and replacing them with low-cost warranty salespeople. They of course had no chance of pulling this off because they where not the 2nd largest electronic store but 3rd and shrinking behind BBY and Walmart so they where not going to get the price concessions to compete on price. They should have concentrated on the higher end with superior service as BBY can not compete in that market.

Actually, the difference in prices for sourcing 25,000 flatscreen tvs and 75,000 of the same unit are so marginal as to make no difference. In China (or Taiwan or South Korea), they base things on factory runs, and once you are willing to order a MQC of a week's production run (or more), you get about the best price you can acquire.

There are more savings to be made in the logistics supply chain than on the volume, and that's where Walmart kicks their butt. That super-reduced TV you spot may be a great price, but it's not clever buying if it's $200 cheaper at CC than at BBY or WM. It's someone clearing out inventory that they overbought. Either that or it's a "loss leader" (note the absence of caps).

One of the things that confused "the street" about the retail figures at the beginning of Q4/07 was that WM was still showing decent figures. But that wasn't sales... that was cleverly managed inventory and supply chain. Will that carry them through a 2nd season? No! Once you've cut your inventory to the bone, the only thing you can do is convince sellers to carry it for you, a la a Vendor(Seller) Managed Inventory program. VMI(SMI).

CC has been having this Sadie Hawkins Day sale every year for the last about five years, haven't they? The holiday results stink, they say they'll recover with their January sales, and then that doesn't happen. So some analyst (who's probably a lying scumbag and is overcommitted in CC) trots out reports about how ripe they are for a buyout. Last year they were talking number like $19.... that'd be four-fold this year's offer. Three years ago, the figure was in the $30s.... And every year, the officers' stock goes up, and they refuse the buyout. It's getting tiresome. You get a 48 hour window to jump on it, but you need to be precise and you need to have twenty or thirty thousand bucks to play with. You can make $2 in a hurry, but you can also wind up with about $0.50 if you're not quick.

Block Buster can't even figure out who they are. They want to now be a revolutionary experience where you can buy your entertainment plus the e-goods to play the entertainment on????!!! Just what mulberry bush were they sleeping behind for the past 25 years? This is "unique"? Have they never been to CC, The Wiz, or BBY? I'm sure those aisles of CDs and DVDs were right next to those departments full of players of every size and shape. What moronic reporter even quoted this asshat in an article, frankly?

CC might be a move, but selling short on BlockBuster would seem to be smarter. They're not making any money, so they must be spending whatever they have left in the safe just communicating with themselves and dreaming up stupid things to tell the gullible press so that they can raise financing for some pipedream. The money market is in no mood for nonsense, right now. I'm going to be extremely surprised if they find backing other than junk bonds, and if they go to junk bonds, I'm going to be real surprised if CC's board goes near the offer.

[RecoveringYuppy]

I put in an order last night at Fri's closing of $3.90 and knew I was dreaming. :( Oh well; it wasn't going to make or break me either way.
Less than 5% away from the target prices we set a while back.