billddrummer

Media Companies to Fed: Tarp Me!

phil,

Well said, and spot on!!

In answer to a question you posed some time ago, I live in Reno, NV.

The CC that is closing is in Sparks, a town just east of Reno. It's just over 2 years old, and competed with the BBY I work in for CE business. New mall with standard mix of anchors and line stores (Old Navy, Michael's, PetSmart, Home Depot, Costco, Sports Authority, etc.).

Last week we learned that no more deliveries would be going to the closing store, and discounts started at 20%.

This week the discounts went to 30%. The sign wavers are on every corner.

Since the same company is handling the Mervyn's liquidations here, the signs look identical. Only difference? Mervyn's is now discounting stuff by 80%.

I believe they need to be done at year end as well.

CC's Reno store is in a poor location with terrible access. The Sam's Club parking lot is usually packed. The CC parking lot is usually empty.

(This mall isn't an SPG property.) I'm reasonably confident that CC will attempt to renegotiate the lease. But I don't think it will work. And I also don't think another big box retailer would want the space because it's too hard to get to.

I see nothing but another 556 empty buildings after the holidays. And that doesn't sound like $5/share in value to me. More like $0.

But it's trading at a dime now, so the downside risk is minimal.

Media Companies to Fed: Tarp Me!

Tim,

CC hasn't got that kind of equity. The reports from the bankruptcy filing were based on the 8/31/08 financial statements.

NOW, CC has $898 million owing on its DIP facility, according to the WSJ. The filing listed $292 million in outstandings against the prior asset-backed credit facility, but they've drawn it up to $898 million because of the massive cash burn rate over the past 3 months.

You may find yourself with some useless common. But that's just my opinion.