Circuit City (cc), Brlc And Rsh

Discussion in 'Stocks' started by michaelscott, Jun 20, 2007.

  1. Tommorrow's conference call will likely be bad and the price is going to the 13-14 dollar range. I believe at that range the stock will finally be a buy.

    I have drawn a chart to demonstrate why I believe Circuit City will be a buy. The head and shoulders will complete.

    Next I will illustrate that the same thing happened to Radio Shack.

    During the call tommorrow, I believe that they will announce bad news for BRLC. That will sink BRLC to the 3.5-4.0 range and that will become a buy too at that level.

    This is all theory, so wait until after the conference call to make a decision...well, you wont have any choice, they announce before market open.
  2. As you can see, a similiar story with RadioShack. Head and shoulders, completion and then spike.
  3. Now looking at the current RSH chart we see that the price has reached the 35 point. This is a key point because there is another point on the chart (not shown on this chart, but shown on the previous RSH chart in this thread) where the price is almost exactly at 35.

    When the price of a stock reaches its previous high, then there are either buyers waiting to take it higher (for example, IBM hitting 100) or sellers waiting to take it lower (for example AIG hitting 73).

    From what I am seeing, I believe RSH will move lower down to 25 and then rebound from there to form a huge reverse head and shoulders. The BBY news was bearish for RSH and so will the Circuit City news in the morning.

    This next point I make is very important. Remember when RadioShack was going crazy on the day of the correction moving up strong? There is a reason for that. If this is truly a huge reverse head and shoulders that is forming, then you have a price target of 57 dollars and a challenge of the year 2000 highs. If it goes past the year 2000 highs, then there will be a serious breakout taking it probably to the triple digits. This will be another Amazon.

    I could be wrong on this entire thread and Im certain that someone on this website will be waiting to lampoon me. If Im right then they will just let the thread die.

    If Circuit City moves lower to the 13s, buy it. If BRLC moves to the 3s, buy it. Wait for Radioshack to pull back to mid-20s, then buy it.
  4. Here we go. Make your buy point for CC 13-14 dollars. Thats my call.

    BRLC and RSH should follow in kind. That would be a nice hedge buying all 3. RSH at 25 dollars, CC at 13-14, BRLC between 3-4.

    NEW YORK, June 20 (Reuters) - Consumer electronics retailer Circuit City Stores Inc. (CC.N: Quote, Profile , Research) on Wednesday posted a quarterly loss that it called disappointing and withdrew its earnings forecast, citing a drop in advanced television sales and an uncertain economic environment.

    The company reported a loss of $54.6 million, or 33 cents a share, from net income of $6.4 million, or 4 cents per share, for the fiscal first quarter.

    Analysts, on average, had been expecting a loss of 32 cents a share, according to Reuters Estimates.

    The results come one day after Best Buy Co. Inc. (BBY.N: Quote, Profile , Research) reported quarterly earnings that missed analysts' estimates by a wide margin and gave a disappointing full-year forecast as TV sales cooled. The results and a weak earnings forecast cast new doubts on U.S. consumer spending trends, weighing on its rivals' shares and the U.S. stock market as a whole.

    Reuters Pictures

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    Shares of Circuit City closed on Tuesday at $16.07 on the New York Stock Exchange.
  5. hajimow


    So Is it a short now at 15.40?
  6. RSH is a short into high 20's.

    I hope people don't buy the dip at 33 and change.
  7. That's a major piece of shit and if BB and Circuit City are doing so bad RS must be doing atrociously...the question is whether firms like Goldman liquidate the positions they've accumulated or do they keep buying?

    I am short via Puts both short and long term.

    Cheers. :D
  8. hajimow


    I also see AMZN at 65 in a week. Big screen TV sales is down big time. Huge price drop and competition. You can buy these items cheaper i n CC than in Amazon.
  9. I've got a lot of money saying that AMZN closes below $70 at July expiration. I'll surely close out my contracts beforehand, but I think it's going to be mix-$60s sooner rather than later.

    I don't see the same support that was previously there. It's a game of who can get out now without slamming the price perhaps. :D
  10. hajimow


    Agreed. I am closely watching AMZN. I feel wise big share holders are slowly getting out without causing any big damage to the stock and scaring small share holders.
    #10     Jun 20, 2007