Circuit City (NYSE:CC) is actually seeing its shares trade higher today. This isn’t on the consumer rebirth, and it isn’t on the company turning itself around. Today, Barron’s is reporting on its "Tech Trader Daily" that there are rumors that famed investor and fund manager Eddie Lampert is interested in acquiring the company.
Does this mean Sears Holdings (NASDAQ:SHLD) would buy it, or is it just Eddie and backers? We can’t say and frankly we don’t want to speculate on the odds of which is or isn’t true. We have looked at this quite frequently for a BAIT SHOP pick as a potential takeover candidate (now our "Special Situation Investing Newsletter") but we have never been able to make the case for the value. Since the company shot itself in the foot it now even potentially has a severe relevance issue (24/7’s view).
If anyone could add or find value in this electronics retailer it would be Lampert. But there are certainly better fishing spots out there.
Jon C. Ogg
October 3, 2007
Jon Ogg produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER; he does not own securities in the companies he covers.