Circuit City's Stock Is Too Low For The NYSE
More bad news for Circuit City. Its stock is trading so low that it is in danger of being delisted from the New York Stock Exchange.
CNet explains:
According to a form Circuit City filed with the SEC Thursday, the NYSE said the company's stock was "below criteria" because the average closing price was less than $1 per share for the 30 previous days. NYSE requires any company's minimum average over that time period to be $1.
Circuit City's stock closed Friday down 4 cents to reach 26 cents.
Now that Circuit City has received the notice, it has six months to get the stock's act together. As long as the average 30-day closing price is more than $1 sometime during the next six months, it can stay listed.
Circuit City has 10 days to respond to the NYSE that it plans to get its stock back above $1. In the meantime, the company's CC ticker symbol will be followed by a ".BC" to show it's below continued listing standards.
Things are not looking up for CC.
Circuit City gets delisting notice from NYSE [CNet] (Thanks, dohtem!)
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Comments:
@Silverage: uhhhh, the article just said that cc's stock is 26 cents a share. my maths tells me that 26 is lower than 45...
a lot of businesses are in real trouble. the consumerist covers articles about circuit city to begin with, hence this one being posted.
From your sister site Gizmodo: Sony ordered all of its electronic shipments going to CC to return to Sony mid-transit because Sony feared CC could not pay them for the merchandise.
If CC is delisted, does that effectively kill any buyout hopes?
no, any company can buy a private one. CC online site is really nice, too bad their in-store is crappy!
Even if they are delisted trading is still possible OTC.
Kids, better redeem those Circuit City gift cards ASAP! go there and buy ANYTHING! even sodas and junk food (if you're so indisisive) seriously! get anything!
Circuit City is masquerading as a Consumer Electronics store. They can't turn a profit on most of what they sell, unless they attach extended warranties, accessories or installation.
Most of the warranties are over priced and often worthless. The accessories are always over priced at Circuit City. The installation services have some value, but are usually over priced.
Essentially the sales staff has an adversarial relationship with the customer, since their main goal is to sell a warranty, accessory or installation. The salesperson could be an expert on consumer electronics, but if they don't sell enough warranties and accessories they will be fired.
I would like to thank Meg for working this weekend and picking up the slack after they let 2 good writers go. You and Ben are working so hard to keep this site up. Keep up the good work.
@albear: While you're doing that make sure you DON'T buy the extended warranty on anything INCLUDING the soda and junk food, which I'm pretty sure they sell it on.
I'm looking forward to the clearance sale.
Black Friday might be really black as in funeral black for CC this year. That is if they make it that long, there on life support now.
Wow... Rite Aid and Circuit City's prices are only a couple of times greater than Washington Mutual's.. and WaMu is bankrupt!
Wow... I feel for the GOOD employees, and and happy that the BAD employees helped dig their own grave.
I've been to CC 4x's in the past two years and EVERY single time I've gone and asked for help the employee has always told me word for word, "I'm busy go ask him/her". Great customer service (sarcasm).
@Ray: Yeah, and there are also foreign exchanges happy to take anyone's listing. SCOX, for instance, after it was delisted from the NASDAQ and then later refused access to the Pink Sheets market now trades on the Karachi Stock Exchange (KSE) in Pakistan. Not that any movers or shakers out there buy stocks from those places.
@rjflyn: Some analysts have said that black friday (and the time leading up to black friday) is one of the methods that CC is going to try and use to reverse this trend. There has been talk of super low sales for the retailer. Basically a mini liquidation sale (liquidating merchandise is supposed to be one of the steps they're taking along with the closing of stores).
Even then its an unknown what will happen. Some say that its going to force other retailers to follow suit on the prices and negate CC's efforts. Others say that other retailers might be hesitant to follow CC's prices but even then there is no gaurantee that the low prices will bring in shoppers.
Hmm, I got a $10 gift card from circuit city when I bought saints row 2.
Now I see they're giving out 1600 point MS cards if you preorder gears 2.
/was thinking of using the $10 gift card to buy GOW 2 and get the 1600 point card. But will CC be around when GOW2 comes out :P
Because without CC we consumers will pay much more for our "stuff". CC has been keeping BB in check, BB has been keeping Newegg in check and on down the line. Lose one and we all suffer.
... if they get bailed out I just bought 500,000 shares hoping to win in a virtual stock market contest.
C'mon, Circuit Shitty!
@Red_Flag:
No, not all. Three reasons:
1) The residual value of CC stock (meaning the breakup value) after adjusting for debt is higher than the current stock price. Much of that residual value is in realestate holdings (buildings and land) which could only be extracted if the holdings were sold.
2) A stock that is delisted from NYSE can be listed on other exchanges (NASDAQ etc)
3) Stocks that tank down to nothing are attractive to takeover specialists due to the risk versus return ratio.
@bovinekid: Possibly because the poster is a Rite Aid customer but never sets foot inside Circuit City?
@Ray: But more likely, if they intend to stay in business, is to declare a reverse stock split, say 20-1, which would immediately bring their share price up high enough to continue to be listed on the NYSE.
@Silverage: Please don't post an irrelevant comment. Further, "who cares" type comments are obnoxious and not allowed. Don't do this again.
@homerjay- Smiling politely: the employees quite possibly get frowned at by management if they don't try to upsell the extended fizz warranty on the 20 oz bottles of soda.
Man, I went in CC today to browse and I can see why they're going down the crapper. Movies and music are strewn haphazardly around the barren racks. It looked like the store hadnât restocked much of anything. I was looking for some speakers and the store only had a couple different types. The whole experiences had a deathly pallor about it, even though the store had a âNow Hiringâ sign up. CC is truly on its last leg. Maybe reorganization will help them, but I doubt it, especially in a floundering economy.
What did Circuit City do to The Consumerist? You guys sound like youre out to destroy them
@Silverage: Hmmm, that's not stopping them from opening a "trendy-looking" new store across from Cal State University Stanislaus in Turlock, CA...
Overheal. That is a very interesting thing to note about this website. Have you read many articles about anyone who has had a really great customer service experience at Circuit City? I never have. Its too bad because I would never think about going anywhere else but Circuit City for electronics. I also think its interesting how people talk about how overpriced all their stuff is like accessories. Excluding online stores and "mom and pop" shops you will see similar prices anywhere you go. It is too bad that competition on some products has gotten so bad that companies will loose an average of $50-$100 -$200 on a laptop. Do you expect them to just say "Hey, here is a laptop that looses us $50 every time we sell it. That's all you need. Don't worry about us making money. We are a big company. We have tons of money" For God sakes they are still a business. They are entitled to make money. And God forbid that this type of thing happens across the board so that the only way you can get a USB cable quick is to order it online and have it shipped to you. Of course it costs more to have it for you right now right down the street.
I too worked for CC once upon a time. Once they ditched commission and tried to mimic every aspect of Best Buy, the company was doomed. Employees are nothing more than numbers - you are ranked based on your extended warranties, extra software, etc - and the fact you sell products means nothing to them without getting upsales. I never once heard a nice thing said about the company, even from the career managers. In fact, our store manager walked out and quit one day when she heard back about an assistant managerial position open at Best Buy. Seriously. No one flew the company flag - ever. After this story was made public, any management dumb enough to have stuck around abandoned ship.
It was a sad place, really. And having worked quite a few retail jobs before and since, I know that store attitude is a direct reflection of the corporate environment. Best Buy may not be much better, but at least they know how to treat customers.
What does this mean for Sirius, it's been trading under a dollar for months now....when does Nasdaq decide a stock is too low to trade?
Back when DVD players were new I went into a Circuit City and bought $3000 worth of electronics from CC. DVD player, TV, 5.1 surround sound system, the works. Then a week later CC announced the rival DVD format DIVX. I was so pissed I returned everything and bought it from somewhere else. I knew back then the DIVX format would never win and CC would go down for there mistake.
I work for a Circuit City store.
My manager, in a meeting tonight, confirmed that on Monday, they plan on announcing the closure of 155 stores in the United States, and that the liquidation would start within the next few days.
Good night sweet prince... and so, we enter the tyrannical age of Lord Best Buy.
They're so desperate now that they have to try and give gift cards with new game purchases and such. I actually have 3 Circuit City stores in neighboring towns, and all of them are awful, the employee's don't know anything, and they never have anything in stock. And this is coming from someone who works in 2 other retail stores, for me knowledge about product is extremely important and I take very seriously in my jobs. If someone isn't even going to bother caring, then why work there?
@Overheal: I guess it's that vindictive feeling, coming from visiting this overpriced chain, with very bad customer service.
A form of vengeance?
CC is run by teenagers!
@Meltdown:
Yes, but there is just something to do about hopping in your car on a wet winter morning, and journeying out to a massive electronics retailer to bask in the glow of fresh electronics...
What?
Sorry but this isn't true.
Shipments were turned around due to a sinkhole at the distribution center.
[www.lehighvalleylive.com]
@Silverage: Boo hoo hoo. No sympathy for Rite Aid. I've been pissed at them ever since they bought out K & B.
For those who don't know, K & B was a New Orleans based drugstore chain. They were the only store to have their own store brand of liquor. Everyone always had all sorts of K & B branded things in their homes (pencils, playing cards, notebooks. Their K & B icecream was EXCELLENT. Everything in their stores was purple: the uniforms, store directories, shopping carts, cash registers. Even the store credit cards were purple.
K & B was unique. Wrong Aid is blah.
Let me guess, next week Circuit City announces a 5 for 1 reverse stock split. Problem solved!
Circuit City?!?! Who cares about them. Look at Rite Aid, a national drug store chain, whose stock has gone as low as 45 CENTS a share, has over 7 billion dollars in debt, and is in REAL TROUBLE. That's a story you should cover.