Re: Circuit City
Circuit City (NYSE: CC) has been synonymous with electronics retail, but companies like Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT) have brought too much marketing muscle and wholesale buying power to the industry. Outside investors are already circling Circuit City trying to "improve shareholder value". That means that there is a good chance the chain will be sold. The price of the company's shares has already dropped from over $30 less than two years ago to just over $4. Best Buy could be the most logical buyer by keeping the locations that do well and closing the rest. Virtually all the merchandising, management, and public company costs would go away as would the Circuit City brand.
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