"Sales" do not equal "profits" as you'll all come to see as retailer stocks plummet. Retailers led by Wal-Mart will be chasing each other to the bottom with fire sale pricing to clear dead inventory as consumer spending dries up.
No more housing ATM loot = no more Circuit City shopping sprees. Their stock is off 40% in just the past few weeks alone.
Desperate Wal-Mart slashing prices = all retailers who compete get slaughtered.
Housing crash = consumers hunker down.
Get ready America. This downturn is gonna be brutal. Anyone see the PPI inflation data today too? Poor Bernanke. What a fricking mess.
Consumer electronics retailer Circuit City Stores Inc. said Tuesday it swung to a loss in the third quarter as deep discounts on flat-panel televisions and computer hardware and software cut into profit margins. It also lowered its full-year sales outlook and shares fell more than 16 percent.
The nation's second biggest consumer electronics chain after Best Buy Co. Inc. reported a loss of $16 million, or 9 cents per share, in the three months ended Nov. 30. Analysts polled by Thomson Financial were looking for a profit of 5 cents per share.
December 19, 2006
Housing Crash Effect #784: Circuit City "shocks" the market with a 3Q loss, stock plummets
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NEW YORK (MarketWatch) -- Shares in Circuit City Stores Inc. fell sharply Tuesday after the company reported a surprise third-quarter loss, hurt by price cuts on flat-panel televisions and other consumer electronics that eroded margins.
stagflation?
I've got my disco dancing shoes polished and my white leisure suit just came back from the cleaners! Got my Bee Gees albums lined up and I'm ready to groove!
I have some very important simple advice for everyone who owns stock.
SELL!
this could really be cyclic pricing pressure because everybody who wanted a flat screen got one and now circuit city has to figure out how to sell the second, third, forth set,....
i want one.
not buying one though.
A lot of housing loot ended up at big box retailers.
Now they're going against those bubble-driven numbers and it's gonna be messy as consumer spending dries up
Let's pick top 5 retailers who'll get killed during the housing crash.
My Top 5:
Circuit City
Home Depot
Lowes
Ethan Allen
Pottery Barn
Pick away HP'ers
Look at a chart of the stock price. It's fine.
the reason i am not buying one?
because my wife and i are living in a 900 square foot condo.
we cant afford much else in northern virginia that isnt 2hrs from work.
so we sit, and wait and enjoy the coziness of it all.
"Look at a chart of the stock price. It's fine"
A 40% drop in a few weeks is fine?
Thanks David Lereah for your insight. He he he
What?!
Living within your means?
How un-American :)
"Look at a chart of the stock price. It's fine."
when you look at charts make sure you look at the numbers on the left side and at the botttom.
just an FYI.
"Look at a chart of the stock price. It's fine."
"Look at a chart of the stock price. It's fine."
So funny it's worth repeating.
http://finance.yahoo.com/q/bc?s=CC&t=5d
Can you say fall off a cliff? Good call Kieth.
I disagree that Home Deopt will get hurt much. Has anyone tried to buy anything there? The lines are staggering (because they only have 1 checkout ane with a real person and 2 of the 4 auto checkout machines are down) and there is no one to help you inside.
I've got a HD less than a mile from my house and I'll drive 8 miles (each way) in order to go to Lowes because they have the items in-stock and they have someone to take my money.
Circuit city is toast. Best buy is eating their lunch not to mention the housing bust.Stick with best of breed my friends.
You are a fool not to be in the market now. All that real estate loot is coming into the market looking for quick returns.Where else you going to put your money and get a decent return?A cd at 5.5 % is not going to cut it folks. Gold is too risky for me.Stay with good stocks and you will be fine over time.Remember to diversify.
Could it be that the American consumer is finally waking up to the fact that one can not attain happiness by accumulating material possessions?
That the real satisfaction in life comes from doing things that you enjoy, and being with people whom you love?
Nah…it’s just that the American consumer is finally tapped out and is no longer in the mood to spend.
-Mammoth
I went to Best Buy Thursday to get a USB adaptor. Waited in line for 20 minutes to pay...on a Thursday afternoon.
I think Best Buy is kicking Circuit City's ass and Circuit City's stock troubles are because of that and not a housing crash.
Perspective people, perspective.
My Top 5:
Circuit City
Home Depot
Lowes
Ethan Allen
Pottery Barn
Pick away HP'ers
-----------------
Pier one imports
Bestbuy
Sears
GM
FORD
CHRYSLER
DODGE
Check Mate!
I was in home depot last night, and all the employees were sitting around the service desk doing nothing..if there were 15 customers in there i would be lying to you...no bull shit.
As a local gov't employee, I love recessions as that is where I finally start buying items at firesale prices. Also the reason I save that $ during the non-recession years.....I do my part to try and get us into a recession. There is $ to be saved by buying things during recessions.
bork,
you are a fool. dont you know the dollar will be worthless? anything you have in a US based company or a US based exchange will be worthless.
BUY GOLD NOW!!
For only $99 I can send you a newsletter.
operators are standing by.
1-800-PARANOID
It sure was nice of Circuit City to sell me that $3300 big screen for $1999 on Black Friday weekend. Sorry about their luck...
Anonymous said...
bork,
you are a fool. dont you know the dollar will be worthless? anything you have in a US based company or a US based exchange will be worthless.
BUY GOLD NOW!!
For only $99 I can send you a newsletter.
operators are standing by.
---------------
Ok I have to ask I am a fool why? I dont have any stock in those companies...I am all Metal ATM!
i sure as hell would buy gold... http://www.investmenttools.com/images/wfut/forex/dx.gif
Crate and Barrel
Ikea
Levitz (FINAL nail in the coffin)
BREAKING NEWS!
Worst of housing slump is over
By JEANNINE AVERSA, AP Economics Writer
Tue Dec 19, 3:06 PM ET
WASHINGTON - The worst of the housing slump is over, although some pain is likely to linger, an adviser to President Bush suggested Tuesday.
This year's housing slowdown — which came off five straight years of booming activity — was a key force behind the overall economy's loss of momentum in the late summer.
hI Mammoth
I'm due to replace my PC in about 9 months...SWEET.
No such thing as "poor Bernanke".
He blew it last spring when he quit raising rates and started kissing a$$ with Wall Street and the REIC.
My Top 5:
Circuit City
Home Depot
Lowes
Ethan Allen
Pottery Barn
Pick away HP'ers
Another biggie is William Sonoma- the flagship of Pottery Barn, Bebe Stores Inc. & Ann Taylor
I'm not that smart about these things, will someone please explain it??
They expected to make 9 cents per share, but ended up losing 5 cents per share. They actually lost $16,000,000 (million) dollard in the three months ending November 30th.
Why did the stock price drop 16% Now it's at like $19 and some change.
Is it still worth a lot of money because of all their land holdings?
"The worst of the housing slump is over, although some pain is likely to linger, an adviser to President Bush suggested Tuesday."
And we all know how sharp Snippy's advisers are. I'll bet the housing recovery is a slam dunk!
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