- Summary: Circuit City Stores' board approved a plan to raise its quarterly dividend to $0.04 from $0.0175 and to boost its stock buy-back by $400 million to $1.2 billion.
- Comment on related stocks/ETFs: Circuit City's stock (CC) has significantly outperformed rival Best Buy (BBY). Circuit City's stores were so miserably managed that the company had ample room for improvement, while Best Buy is generally a far better managed company. This is a stark reminder that of the importance of the expectations and sentiment that are already priced-in to a stock, and the potential for upside surprises. CC and BBY one year chart below; click to enlarge:
Excerpt from today's Wall Street Journal annotated summary: