Retail
Blockbuster Realizes Circuit City Is Garbage In Garbage Out (BBI, CC)
Published:
Last Updated:
Blockbuster Inc. (NYSE: BBI) is seeing a surge in early trading ahead of a long weekend. The company realized that the buyout interest of wanting to own Circuit City Stores Inc. (NYSE: CC) was ill-founded and realized it was as good of a fit as chocolate and dog food.
Last night, Circuit City acknowledged that the bidding interest from Blockbuster was done after initial due diligence. More importantly, the ailing computer and electronics retailer reiterated that it is exploring its own strategic alternatives on an active and ongoing basis.
Circuit City shares are down 14.5% at $2.18 and Blockbuster shares are up 12% at $2.82 after an hour of trading.
We noted along with Circuit City’s earnings that it sounded more and more like the company really wants to pursue a go-it-alone strategy. We’d advise the company that a board of directors revolt needs to take place and the first and fastest way to see the Circuit City stock rise would come from the company firing Philip Schoonover. A constant and steady destruction by management missteps is no way to build shareholder value.
Jon C. Ogg
July 2, 2008
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.