December 19th, 2006
Circuit City: So Much For Efficient Markets
Circuit City swings to unexpected loss on price cuts - MarketWatch
Shares in Circuit City Stores Inc. (CC) fell sharply Tuesday after the company reported a surprise third-quarter loss, as price wars on flat-panel televisions and other consumer electronics eroded margins. Circuit City, which also lowered its expectations for the year, saw its shares fall as much as 19.8% to a 13-month low of $18.25 soon after the market opened.
How unexpected could it have been after Best Buy’s (BBY) report last week? Some investors need to wake up and smell the consumer slowdown.
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