billddrummer

While Best Buy Sneezes, Circuit City Will Catch Pneumonia

with Wattles nominating his own slate of board members and probably continuing to add to his position as trends remain poor, I think you're absolutely right. I think it's a 50/50 shot that Schoonover survives even to the annual meeting in June. Comps are horrible, gross margins are down (again, still, whatever...) operating losses will leap in January because traffic fell off just like at BBY, and the "turnaround initiatives" that have been tried over the past three years are failing. I wonder whether CC paid the WSJ to interview Schoonover when it's clear that the company's performance didn't reflect anything but gross mismanagement of the turnaround process.

Now the bigger question is this: How long will it take for CC to regain some value in its stock? I'm guessing 2 years at minimum, because this ship has been foundering since March 2006--coincidentally, when Schonoover took over. So if you're in at $4-$5, you might see $9-$10 by 2010. But that presumes they can win back the customers that have been driven off over the past two years.

I've got nothing invested in CC except a morbid fascination with a company that can seemingly do nothing but wrong.