Why Is Circuit City (CC) Opening New Stores?

[24/7 Wall St.]

24/7 Wall St. Daily News

Consider the following: Since 2006, shares of Circuit City have fallen from $30 per share to $2.22. In FY 2006, the company earned $140 million. In FY 2008, Circuit City lost $320 million. The company's balance sheet has deteriorated with increasing debt, a declining cash position, and same store sales fell 11% in the most recent quarter. Blockbuster (BBI) had expressed interested in acquiring the company but withdrew its offer saying that it had "determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City." http://feeds.feedburner.com/~f/typepad/RyNm?i=VkR8MJ</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=VkR8MJ) http://feeds.feedburner.com/~f/typepad/RyNm?i=s9jJaJ</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=s9jJaJ) http://feeds.feedburner.com/~f/typepad/RyNm?i=JRojTj</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=JRojTj)


complete story here... (http://www.247wallst.com/2008/07/why-is-circuit.html)