billddrummer

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    • Mon Oct 27th 12:17 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      phil,

      CC is up again, to 30 cents, and volume is huge again.

      Someone wrote a book about Wall Street, and how it resembles a casino unless you're managing billions of dollars in assets.

      That's what it seems like to me right now. Pizza and a 6-pakc sounds even better than a ticket to game 6 of the World Series.
      View article »
    • Fri Oct 24th 19:25 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      Since my net worth is still negative I'll pass on the recommendation, but thanks.

      Perhaps thepoordude will take you up on it.
      View article »
    • Fri Oct 24th 16:50 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      phil,

      You're a bad, bad man. Canadian tire money, indeed!

      Noticed that volume was up AGAIN today and stock closed at 25 cents. I'm wondering whether some short covering is occurring (over 28 million sold short) and people are just dumping it to get out.

      Of course, that means that thepoordude lost out on a 25% gain. But it's going to get harder and harder to sell it.
      View article »
    • Fri Oct 24th 13:29 PM | Rating: 0 0
      Commented on:
      Wachovia Hints at What's in Store for Wells Fargo
      Hi Judy,

      Thanks for reading my posts. I appreciate the opportunity to share my opinions with you, and with others.

      I believe that's absolutely right. There have been signs of recovery in the Inland Empire (Riverside County and its environs) over the past 2 months, as prices have fallen to the point where median homeowners can purchase. Now, in my view, there's still an inventory overhang, but the good news is that fewer homes are coming on the market than are being sold. As the inventory gets worked off, prices will stabilize.

      As we've seen, the 'bottom' is defined differently, based on where you're looking. Las Vegas and Phoenix seem to be closer to it than southern CA. However, the signs are encouraging there as well.

      But I am concerned about the volume of Option ARMs written in those areas, which may result in a 'double-dip' of new foreclosures as rates reset and borrowers find they can't afford the new payments or refinance out of them (because values have dropped so much).

      If the government wanted to keep that from happening, it could target Option ARM borrowers who could afford fixed rate payments, but not the newly indexed ones. Issue guarantees on the overadvanced portion of the loans, and rewrite the mortgages at fixed rates. That way, those borrowers could remain in their homes and continue with affordable mortgage payments while the market recovers.

      Otherwise, there will be another glut of neglected, abandoned properties, foreclosures, and more homes entering the market, just when inventories get 'balanced.'

      More pain for another 2-3 years.

      All the best,

      Bill
      View article »
    • Fri Oct 24th 13:07 PM | Rating: 0 0
      Commented on:
      Circuit City Doesn't Have Enough Cash to Declare Bankruptcy
      To Captain Spaulding,

      That's actually not a bad idea, in theory. My question is this: Would you propose that firedog do the install/techie work in conjunction with circuitcity.com? TGT launched a similar service, providing installation on flat panel TVs and A/V equipment purchased through its website.

      It was thought up by the guy that came up with Geek Squad.

      So if there's any value to the firedog brand apart from the store network, perhaps that would be the way to 'unlock shareholder value.'

      Good thought. Firedog (like web sales) has been growing faster than retail sales, too.
      View article »
    • Fri Oct 24th 13:02 PM | Rating: 0 0
      Commented on:
      Circuit City Doesn't Have Enough Cash to Declare Bankruptcy
      To thepoordude,

      CC is up 5% so far today, in stark contrast to the rest of the market.

      But that means it's up from 20 cents to 21 cents.

      I'm still not sure that this is a buy signal. As bearfund stated, at the end of the game, the stockholders are kicked in the teeth.
      View article »
    • Fri Oct 24th 12:55 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      phil,

      It's on the website, so it must be true.

      NOT!!!!!!!!!!!!!!!

      I would guess that some internal communication went to the store managers to encourage employees to direct customers to vendor support, rather than internal support.

      And if customers complain, the existing policy becomes the fallback, rather than the leading, position.

      Hey, all of you CC-InterTAN employees!! How's it goin'?

      We hope your resumes are up to date. And that the economy is resilient enough to absorb you. Somewhere.
      View article »
    • Fri Oct 24th 11:28 AM | Rating: 0 0
      Commented on:
      Circuit City Doesn't Have Enough Cash to Declare Bankruptcy
      To bearfund,

      Well put. If you recall, the company did take a $73 million haircut in the second quarter, calling it a non-cash 'asset impairment charge.' What I'd want to know, if I were one of the lenders, is which assets were written down, and how much more is left to discount.

      If they write down too much, their net worth will fall further, and they may find themselves in default on the existing credit line.

      If the banks want to play hardball and restrict draws, CC is done.
      View article »
    • Fri Oct 24th 11:17 AM | Rating: 0 0
      Commented on:
      Conference Calls Show Regional Banks Squeezing Homebuilders
      Hi Judy,

      Thank you for this resource!

      We're seeing the same trends in Northern NV. Homebuilders who have a 20+ year track record in this market are seeing their credit lines frozen, properties seized by banks that formerly 'rode the wave' and extended their construction commitments, and playing hardball by increasing interest rates and fees and asking for additional collateral.

      Some builders have been forced into bankruptcy because of the changed climate.

      I'm familiar with one builder who had a spec house for sale for more than 2 years ($400,000 asking price). The bank foreclosed, his contractor's license was revoked, and the company filed bankruptcy, directly throwing 50 people out of work.

      In response, there are 'hard-money' lenders stepping in with high fees, low LTV requirements, and ruinous interest rates. One lender here has been successful making construction loans at 13% with 4-5 points, and a 65% maximum LTV. But that's the only place that money's available for construction financing.

      Until the banks that specialize in construction financing re-enter that market, don't expect a lot of new homes to be built. And that will take years, as the current NPAs are slowing worked out.

      All the best,

      Bill
      View article »
    • Thu Oct 23rd 19:51 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      phil,

      I found the story, through another source:

      www.nyse.com/interface...

      But the exec was quoted as sayiing "I haven't heard anything" when asked about the rumors swirling around CC.

      You mean to tell me that a Samsung exec doesn't read the WSJ just because Rupert Murdoch owns it??!!

      More than likely, he was ordered not to say anything derogatory on pain of severe censure. After all, the chain has 1400 doors to put Samsung product in. Even if it's not selling all that well.

      Time will tell, as it always does.
      View article »
    • Thu Oct 23rd 19:45 PM | Rating: 0 0
      Commented on:
      Circuit City Doesn't Have Enough Cash to Declare Bankruptcy
      And to thepoordude,

      I don't generally quote Jim Cramer, but he has said that good companies don't let their stock fall into penny a share territory. You could lose all the money you put in, if the company is shut down (either by the creditors or management).

      I'd stay away and do your own research on the things that matter--sales growth, profitability, balance sheet structure, debt levels, commitments, and market share.

      Only if you have money you won't miss AT ALL, go right ahead. But that's just me.
      View article »
    • Thu Oct 23rd 19:42 PM | Rating: 0 0
      Commented on:
      Circuit City Doesn't Have Enough Cash to Declare Bankruptcy
      To flatearth,

      Why do you think they will be able to fix the problems you've identified if they run out of cash before the holidays?
      View article »
    • Thu Oct 23rd 18:39 PM | Rating: 0 0
      Commented on:
      Wachovia Hints at What's in Store for Wells Fargo
      Hi, Judy,

      A followup comment:

      As we noted previously, Las Vegas sales are skyrocketing as prices have fallen. The rate of foreclosures there hasn't slowed down yet, but I expect it to by early next year.

      If the government keeps talking about saving the housing market, they might find that by the time something comes out of Capitol Hill, the market will have corrected itself.

      Just a thought.

      Bill
      View article »
    • Thu Oct 23rd 18:37 PM | Rating: 0 0
      Commented on:
      Wachovia Hints at What's in Store for Wells Fargo
      Hi Judy,

      Great job as always. Thanks!

      I found a link you might be interested in. Apparently, foreclosures in the Sacramento area have declined since last month, possibly signaling a bottom in that market:

      www.bizjournals.com/sa...

      Now, that doesn't mean to me that everything is automatically rosy. But it points to a trend that may be developing in the harder hit states--the worst may be over.

      All the best,

      Bill
      View article »
    • Thu Oct 23rd 18:32 PM | Rating: 0 0
      Commented on:
      Circuit City Falls Further: 'Bring Out Your Dead'
      phil,

      I found a link from CNNMoney that quoted a Samsung exec as saying that Samsung was solidly behind CC and its troubles.

      When I clicked on the link, the story couldn't be found.

      So who's fooling who, here?
      View article »
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