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Circuit City Getting Crushed Today
- Thread starter ByLoSellHi
- Start date
Quote from ByLoSellHi:
Remember Highland Appliance (those in Michigan)?
It's a really good question. I don't know, inda.
I do think Costco is starting to hurt BBY and CC where it really counts - on high margin items.
If Costco expands even further in this area, watch out below. Just my .02
You can't beat COSTCO....Bought an ipod last year...had problems with it, took it back 3 times.....never a question, they just take it back and give me the newest model.
Quote from mschey:
If you've added...then the trade hasn't been good...at least not today.
What price did you start building your position?
I just added recently at the top. I only had one layer that was ITM, so it's all loss from the top. I've done well scalping this pair the last 18 days, so i made good production while holding onto 1 layer for the longterm.
Quote from ByLoSellHi:
CC is down 18% today.
Ouch.
If anything, I think Best Buy and CC are canaries in the coal mine of consumer spending.
*Time will tell. But I think retail is toast soon.
*ET Disclaimer - I've been wrong before, and will be wrong again.
Aren't BB and CC particularly exposed to 1 component of consumer electronics: flood of cheap (and declining in price) flat panel tv's hitting the market ?
I thought the same as you, but I wonder if there is a better consumer strength indicator out there... WMT's declining #s could be one, but again, they've reached critical mass. how much growth upside could there be anyway?
On the other hand, this past few months declining auto and housing sales hasn't been thrilling either.
maybe these goldman sachs bonuses will buy up any overstock on flat panel TVs to keep the market from caving in next quarter.
Quote from scriabinop23:
Aren't BB and CC particularly exposed to 1 component of consumer electronics: flood of cheap (and declining in price) flat panel tv's hitting the market ?
I thought the same as you, but I wonder if there is a better consumer strength indicator out there... WMT's declining #s could be one, but again, they've reached critical mass. how much growth upside could there be anyway?
On the other hand, this past few months declining auto and housing sales hasn't been thrilling either.
maybe these goldman sachs bonuses will buy up any overstock on flat panel TVs to keep the market from caving in next quarter.
I agree. Housing and autos are in steep decline mode.
I hate betting against the American consumer, but I am looking for breakage here.
circuit city will be lucky to be around in 5 years. Ever shop at on of their stores. I dont know how they survive, everytime I walk into a CC I feel like its me and the employees.
CDs and DVDs are a thing of the past that no retailer can rely on, sales of big screeen tvs which are still doing well I think will eventually slow down. CC will eventually be bought out or end up closing up.
CDs and DVDs are a thing of the past that no retailer can rely on, sales of big screeen tvs which are still doing well I think will eventually slow down. CC will eventually be bought out or end up closing up.
Quote from ByLoSellHi:
I agree. Housing and autos are in steep decline mode.
I hate betting against the American consumer, but I am looking for breakage here.
It is tough to bet against the consumer but eventually things have to slow, most consumers have been borrowing against their houses to pay for all their new 62 inch plasmas and brand new mercedes. Once the consumer is tapped out forget about record profits. Consumers make up 2/3 of the GDP, without consumers spending a slowdown is imminent
AHA!!!!
http://usmarket.seekingalpha.com/article/22765
The Housing Market is Hitting Demand for Flat Panel TVs
Posted on Dec 20th, 2006 with stocks: BBY, CC
David Jackson submits:
"I speak with my friend, who owns a very high end Audio Video store on Park Avenue. The equipment is gorgeous, and if you ever want a pair of $60,000 speakers, this is the place.
I ask: How's biz?
"Way way off from last year. We typically see abotu $10-15k in walk in business, plus all the installs we do. Some of those are $100k plus jobs [I'm thinking -- 100k? Nice stereo!]. This year, we are seeing $3k a day walk in business. There are occasional spikes, but its nothing remotely like last year."
I ask: What about all the flat panel displays on sale?
"Not our clientele. We only carry super premium -- Pioneer Elite [which is the only tv that has ever made me weep, its so gorgeous] and Fujitsu; Our customers are not buying the $999 Panasonic to go with their $30k in Krell Audio and $20k in Kef speakers [hmmm, drool].
He blames -- wait for it -- the housing slow down. He was doing so many installs into new or renovated condos, Hampton homes and Long Island / Westchester /CT / NJ residences, he could barely keep up. He was booked months in advance. Today? "We can do an install in 2 weeks."
Full article here.
This is fascinating. I hadn't made the connection between the intense price competition in flat panel TVs (ie. Best Buy's disappointing results and Circuit City's earnings miss) with the housing slow-down.
People I know who are moving into new homes are installing 3 to 6 new flat panel TVs.
Now the linkage is clear...
http://usmarket.seekingalpha.com/article/22765
The Housing Market is Hitting Demand for Flat Panel TVs
Posted on Dec 20th, 2006 with stocks: BBY, CC
David Jackson submits:
"I speak with my friend, who owns a very high end Audio Video store on Park Avenue. The equipment is gorgeous, and if you ever want a pair of $60,000 speakers, this is the place.
I ask: How's biz?
"Way way off from last year. We typically see abotu $10-15k in walk in business, plus all the installs we do. Some of those are $100k plus jobs [I'm thinking -- 100k? Nice stereo!]. This year, we are seeing $3k a day walk in business. There are occasional spikes, but its nothing remotely like last year."
I ask: What about all the flat panel displays on sale?
"Not our clientele. We only carry super premium -- Pioneer Elite [which is the only tv that has ever made me weep, its so gorgeous] and Fujitsu; Our customers are not buying the $999 Panasonic to go with their $30k in Krell Audio and $20k in Kef speakers [hmmm, drool].
He blames -- wait for it -- the housing slow down. He was doing so many installs into new or renovated condos, Hampton homes and Long Island / Westchester /CT / NJ residences, he could barely keep up. He was booked months in advance. Today? "We can do an install in 2 weeks."
Full article here.
This is fascinating. I hadn't made the connection between the intense price competition in flat panel TVs (ie. Best Buy's disappointing results and Circuit City's earnings miss) with the housing slow-down.
People I know who are moving into new homes are installing 3 to 6 new flat panel TVs.
Now the linkage is clear...