12-18 Month Turnaround Plays - Circuit City. AMD, Yellow Roadway

Discussion in 'Stocks' started by ByLoSellHi, Jan 8, 2008.

  1. CC (in @ 3.84) - No debt, tons of cash, 5th most visited website on the web, 12 billion in revenue per annum (CEO is a wanker). Prime for a turnaround in margins and/or a buyout (was almost taken private at $20/share just several months back).

    AMD (in @ 7.25) - part of the computing processing duopoly with Intel. Does anyone actually think PC manufacturers want to sole source from Intel? That's like asking to be raped.

    YRCW (in @ 14.17) - Incredibly cheap valuation, and a necessary part of the very basics of American (and now international) commerce shipping. Biggest customers include Wal-Mart and Home Depot). Trucking of everything from decking material, groceries, and HDTVs to stores is here for good.

    Rumors of the demise of the American Consumer are greatly exaggerated.

    (Short term economic volatility notwithstanding)
  2. What's your source for the claim that circuit city's website is the 5th most visited?
  3. a lot of things were almost bought out at massively inflated prices a few months back....maybe that means WCI is a great buy since icahn wanted it at like 21.
  4. I'll add.. CHS, NWY, JAS as some more retail turnaround plays. All have good balance sheets, make money are priced for bankruptcy.

    RAD is also a great play... excellent US brand name... very stable biz and tremendous revenue.. over $20bil. Only downside is that they have debt, but I think the type of biz they are in is sustainable.
  5. GTS


    Yea, I call major BS on that. 5th? No way, Alexa says 467th:

  6. CC has very little debt.. tons of cash. They are not going bankrupt anytime soon. They just need to find a way to stop losing money and make a few bucks. Fyi, they are also paying a dividend.
  7. Buy out for CC seems most likely. Their balance sheet is still strong even though their earnings has taken a huge hit the past 3 or 4 quarters. Margins have shrunk while SGA expenses had increased as a percentage of sales last time I checked. CC will need to close underperforming stores and cut some staff as a first step and then maybe they have a chance. Problem is every store and their mother is selling electronics and appliances so they are in a tough competitive environment.

    I would buy them at around $4 like a $0 strike option call as someone else referred to it here and hold looking for a buyout maybe since it does have value.
  8. CHS looks somewhat interesting.
  9. http://seekingalpha.com/article/58580-a-look-at-online-retail-traffic

    A Look at Online Retail Traffic
    posted on: December 30, 2007
    | about stocks: BBY / CC / JCP / KSS / M / SHLD / TGT / WMT

    I have an interesting question about the group.

    1. www.walmart.com (WMT)= 7.94%
    2. www.target.com (TGT)= 5.06%
    3. www.bestbuy.com (BBY)= 3.96%
    4. www.sears.com / www.kmart.com (SHLD)= 3.72%
    5. www.circuitcity.com (CC)= 3.07%
    6. www.jcpenney.com (JCP)= 2.03%
    7. www.toysrus.com (private)= 1.97%
    8. www.macys.com (M) = 1.43%
    9. www.kohls.com (KSS)= 1.3%

    *One week of Data through 12/22 from Hitwise.
  10. GTS


    5th most visited RETAIL web site - not the "5th most visited website on the web" as you said in your OP....big difference.

    I agree that CC does look good here though.
    #10     Jan 8, 2008