- 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 (NYSE: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: