circuit city bankruptcy

Has Circuit City filed for bankruptcy? There have been great rumors on the Internet that this is the case. Indeed, they have been hurting for a long time. It seems like Best Buy has been eating their lunch for a long time. I remember a friend of mine, who works for an unnamed large credit card company, went to a meeting with them to help them understand why they are losing so much market share to Best Buy. Seem to me that a Circuit City bankruptcy could be in the not too distant future. According to one blog I read, the stock price is down from $20 to $5 in the recent past. I am too lazy to investigate this further, although you could easily validate these stock prices at any number of financial sites. A $15 drop is not the same as a Circuit City Bankruptcy, but it is certainly moving down the path. It ain't good. Why? Well, when you stock price is low, it's a signal of a lack of confidence. It also means that the company does not have access to inexpensive capital should it need to raise money. Who would need to raise money in this environment (read with sarcasm). Yeah - Consumer confidence is down again today. Consumer spending is dropping due to many factors... High gas prices. Higher unemployment. And a dimmer view of the future. New surveys show that people expect their stock portfolios to drop, their prospects for jobs to be lower and the cost of food and fuel to be high for a while... This doesn't even get into the housing market.... Don't you think Circut City got a nice bump from the amazing run up in housing? They do sell appliances right? Well - We'll see...

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