I agree. A hugh difference between Circuit City employees and those of Best Buy. CC people act like they don't care. Not one said "can I help you" while I was in the store.
You must be smoking crack, or just completely out of the loop. Circuit City has been on a cost cutting spree for over a year, with obvious results. The company is going down the drain. How can you even say they don't have a revenue problem when they are losing business to Best Buy, and partly due to their cost cutting measures. Have you ever considered that they have minimum fixed costs? Hence they NEED a minimum market share & revenue base before making profit. 1/3 of Best Buy's revenue is not gonna do it in that industry. When their CEO decided to fire and rehire salespeople at a lower rate, I knew the store was finished. Say bye bye to it, there is zero morale, little incentive to go there over Best Buy and no competitive edge. If they have an exceptionally good deal on some item, that gets people inside, otherwise, people go to Best Buy. The only cost cutting which should have been done is firing execs and that idiot CEO who help destroy the company.
When the CEO decided to fire and rehire salespeople at a lower rate... that was the kiss of death. All of the good, talented employees went to competitiors, and all the bad employees stayed or incompetent underqualified people were rehired. Survival of the unfittest.
I hate having to repeat facts. They have 12 billion in revenue annually. Is that a revenue problem to you? Electronics are the only retail segment I like. Schnoover will be gone soon. Bank on it. My trade is open and obvious. Put your money where your mouth is and short CC.
I like how you said you threw your chips in... because that's basically a gamble... so that is pretty appropriate.
LOL, are you even a trader? Who shorts CC now, when it was obvious a year ago that the company was finished. Have you even looked at a 1 year chart? Why don't you look up posts by myself and others when their genius CEO decided to run his cost cutting plan. Called it right there and then that the company is finished. Have you ever been to Best Buy or Circuit City? Have you tried to compare the two companies side by side, run some correlation, take a harder look at their financial statements? Do you understand the concept of fixed costs versus variable costs? Have you noticed that revenue at CC is DROPPING, while at BBY it is growing? Gee, I wonder if CC is losing customers to BBY. I bet their "bloated expenses" in SG&A are the executives & upper management trying to squeeze the company for everything they can before it folds. They will be selling the company within a year. Your long trade is a shot at a short cover rally at best.
Bingo. And with $2.68 of cash per share on hand, as in not only NO debt, but a cash value of $2.68 (never mind accounts receivables, real estate, tangibles, intangibles), they are a perfect takeout target. If Icahn can turn around distressed, indebted companies, CC represents a unique opportunity. By the way, in case you didn't notice, I started this thread, and was bearish on CC for a long, long time.