Stockchase Opinions

Pat Naccarato Circuit City Stores CC-N DON'T BUY Nov 30, 2007

Positioned in the right place for electronics but have a lot of debt so their real estate position is not as good as Best Buy (BBY-N). Not getting near the sales per square foot as Best Buy and are struggling.
$6.470

Stock price when the opinion was issued

specialty stores
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Likes the retail sector.
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#2 specialty retailer in consumer electronics. In a product cycle. Increasing their stores square footage. Good management. About $5 cash per share.
TOP PICK
They are the #2 consumer electronics of U.S.. There are new products coming out. It might be risky because of competitions from Best Buy which is the #1.
DON'T BUY
Down because of recession. Competitive landscape is very rough. Balance sheet is really stretched.
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Question is can they continue to finance themselves. This is not something he would play around with. Just speculating.