Circuit City stock: buy low?

[bigred]

Last I checked it was hovering around $6....thoughts? I don't see how it can get much lower. Although I don't get (other than the ridiculous top-heavy salaries, bonuses etc) why Best Buy does so well while they aren't. IMO they only real diff is one sells appliances, the other doesn't.

[PB2007]

Last I checked it was hovering around $6....thoughts? I don't see how it can get much lower.

How about $5.99 lower?

In the UK Northern Rock shares have dropped from something like £18 each to about £0.90p in a few weeks due to the US Sub-Prime Market thingy. In one morning the price dropped so much they suspended trading 5 times.

Now i don't know anything about shares etc but to a layman like me i can see that this is "Not a Good Thing". I even thought about investing £500 in the hope they'll climb, but who knows when and if, ever??? My £0.80p a share deal could drop to £0.50p a share and stay there for a long time.

Unless you know something others don't i can't see how anyone can accurately predict the markets.

If you want to do , do it. Just don't invest anything you can't afford to loose.

[kookbreaker]

From what I have heard, Best Buy was in the same boat as CC until they bought Geek Squad.

[Rob Lister]

I won't buy CC as a matter of principle mostly -- they are sleazy (I'm too lazy to expound). As such, they don't get much repeat business, so I think it a bad investment

[Foolmewunz]

If you've got some money to burn, I'd buy it at the current price (although you could wait for the miserable news to come out of the Christmas season on the chance that it'll go even lower,... assuming you're a believer in the coming miserable retail season).

CC suffers from poor management. They've been the target of two separate unfriendly takeover attempts, and there's every reason to think there will be a third.

Highfield Capital tried in 2005 and the stock jumped, naturally. Whether this was just a move by Highfield to up the value of their own shares (about 7% stake at the time) or not, I can't say,... but it worked. Their (CC's) financials this year are miserable, though.

Most important is that they're No. 2 and they're acting like No. 1. BB outstrips them in all consumer satisfaction surveys.

Disclaimer: I handle no supply chain work for Circuit City. I would never post on a company whose business I handle.