Circuit City Stores Inc. (NYSE: CC) has reported earnings this morning but the company is also giving some language as though it might not be all that gung-ho on proceeding with the merger intentions. For the last quarter ended May 31, the electronics retailer has posted a loss of -$1.00 EPS on $2.3011 Billion in revenues. First Call had estimates at -$1.07 EPS and $2.37 Billion in revenues.
What is interesting is that while the company says it is "leading a process to explore strategic alternatives to enhance shareholder value," and it says that the review continues. This also notes that the board of directors has not determined any course of action in that review.
The company has also decided to suspend its dividend.
Furthermore, the company has filed a blank or open shelf registration to allow it to sell an unspecified amount of securities in stock, debt, warrants, and other securities to give the company "greater flexibility to respond to strategic opportunities as they arise."
This week we saw a drop over at Best Buy (NYSE: BBY) after it beat earnings and gave good guidance. Here we have a mixed report and one that might not be the most friendly to future holders if the company keeps its "go it alone" strategy. Philip Schoonover has done such a poor job of things that he is still one of our top CEO’s that need to go. In fact, we think he needs to change his name to "Scoot Over."
Shares are indicated up 2% at $4.14 after a $4.05 close yesterday. Its 52-week trading range is $3.44 to $16.27.
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Jon C. Ogg
June 19, 2008
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