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Debt as stated in the Bk filing includes shareholder equity. Excluding shareholder equity , the debt may be even lesser
With a book value of 6.4 and assets more than debt by 1.1 B, chances are that the Bid would be closer to $ 2.00 - $ 3.00 . Lets see as we get more details..............
I Think one of the first two, CG or Salinas will win the battle as their bids are higher and it is in the interest of everybody to keep the company running............. Debtors stated that in the discussions.
It is a private equity firm and not a liquidator. CC keeps runnning. GL
Thanks Glassy for posting the news. I think it will be official tommorrow. By morning, you will hear Salinas beat the Golden gate bid. GL all.
If you sell, they may put you on restrictive trade for 90 days. That's all. It is an SEC regulation atht brokers have to keep. But you can sell ,no issues.I have done that before
Call Etrade, they may be able to buy it for you, if the issue is margin related
I can't believe you sold with all the info you had.....get back in fast......
That was an attempt to get the remaining ihubbers and yahoo retailers to sell.
Might be one of the big guys or a " great gambler"
One has to place the bet one way or the other after seeing Risk/reward. I have placed mine few days back and lets see which way it goes. Either way down side is not much from here.
I too hear that proceedings are complete and they have all the details that is needed to make a decision tommorrow. But can expect some news today , may not be in its entirety.
I don't think so. Tommorrow is the day . Secrets are guarded very tightly by CC and Court and going concern bidders.
Circuit City remaining open is best for US and US consumers
I think so too...........
This is am Old article. But Carl Icahn still loves CC
Blockbuster: Did We Mention That Carl Icahn Likes Our Circuit City Bid? (BBI)
Peter Kafka | April 21, 2008 11:20 AM
Wall Street hates Blockbuster's Circuit City gambit, in large part because it can't figure out where Blockbuster (BBI) is going to come up with the $1.3 billion it says it will pay for the foundering electronics chain.
Blockbuster, says the WSJ ($), is trying to calm the street with a two-pronged attack: Arguing it can strip much of the cash it needs out Circuit City (CC) itself -- and by mentioning that Carl Icahn, Blockbuster's shareholder, likes the deal. But they've been using that second gambit since they announced the deal last week (by our count they mentioned Carl 3 times during the conference call last Monday). And it hasn't worked: Circuit City shares have dropped since the bid was announced.
The other problem Wall Street has with idea: Even if Blockbuster could afford it, investors can't figure out why it would want to do it. And Blockbuster CEO Jim Keyes' argument -- we have to do it or we're screwed -- is neither convincing or reassuring. Today BBI shares are down again, perhaps because of this passage in the WSJ story:
Mr. Keyes was surprised by the market's negative reaction to a possible deal, people familiar with the situation said. He has spent the past week trying to convince investors that a combination is necessary to enable the video-rental company to compete in a digital era.
Someone in the Blockbuster PR/IR team seems to have figured out how terrifying those lines are, which we're guessing is why there are not one but two stories about in the WSJ today. The second, much shorter one (six paragraphs, two writers!) presumably cooked up late on Sunday, tries to reassure investors that the company doesn't have to make the deal, after all. The headline: "Blockbuster Soften Tones On Bid".
It is Blockbuster Vs. Salinas. Lets see who prevails. I prefer Salinas...............
Good morning Everybody. Hope to have some good news today>
Anyone still on the call ? Can't get into the call anymore
Ok, I decided to give you some facts :
1. salinas owns 28 % stocks. He is interested in buying out circuitcity going concern
2. Mark wattles owns anywhere betqeen 6.5 % - 15 % stocks.
3. Institution holds close to 52 %
4. OS is very low for such a big company -168 M
5. Assets / Debts = + 1.1 B
6. Website ecmmerce site is very valuable asset for any retailer.
7. Onve the operational money is made avilable in 2 -4 years this may trade at $ 10.
8. B;ockbuster previously made an offer for $ 6.00 a year back and is still interested and pursuing a buy out
I am not gonna show all the facts to all the posters on the board. Wait today, tommorrrow and Friday and facts will be there for all to see
GET YOUR FACTS STRAIGHT........DO MORE EADING BESIDES WIKIPEDIA............lol.......... JUST KIDDING
How will Blockbuster finance its takeover plan?
CEA SmartBrief | 01/12/2009
Given that Circuit City is calling on Blockbuster to prove it can finance its planned takeover of the electronics retailer, several sources close to the matter say the video-rental chain is looking at several options, including an existing debt facility, selling some assets or leveraging Circuit City's balance sheet. Wall Street Journal, The (subscription required) (04/21)
You are pretty close to the NEWS ..............LOL. Interesting !!!!!!!!!!!!!!!!!!!
WOW!!!!!!!!!!!!! we have two really interesting group, Block buster and Salinas. This will be a fun ride..........
george/boggrr, no question of chapter 7, they filed chapter 11, so even if a going concern buy out does not happen, still the proceeds will go to BK court and commons will still get much much more than 20c.
At this point risk /reward heavily in favor of reward
That would be Great. I expect anywhere between 1.5 and 3 . Lets see.
meaning we just brock the resistance @ 0.205
Nope. We r just getting started here. Are you kidding me? Book value is $ 3- $ 4. look at the BK details. Will get sold somewhere between $ 1.5- $ 2 range , IMO
Off the block...............
Deal will be finlaized most likely by the end of the day . May become official after the final bid on 16th. But chances are that we will know some details today. GL all that are still holding .
That could be good, if you turn your desktop upside down and watch the Chart. LOL
Pershing square, Wattles Capital Management LLC, Grupo Salinas will all be in action tommorrow @ 3.00 PM in my opinion. Will be a very interesting day.
I Bet we will have a going concern auction given the value of assets and circuit city ecommerce website.
Looking for a great NEWS
Tony, thanks for your interesting posts and inputs. I think we are good here.
Will be an interesting EOD .
You don't want to be STAY Focussed on Sand. waves will wash them. You better stay focussed on some ROCK. GL. LOL
"A going concern transaction means Circuit City would sell itself in its entirety and continue operating. An infusion of capital could help it continue its restructuring."
In My opinion , "Everything is a done deal in Salina's mind and Circuit city management and Mark wattles as that presents the best oppurtunity for all"
mark my works " Tommorrow before close we will be trading close to the sale price value"
Bagful's Inscrutable Circuit City Strategy:
If Salinas will loose his 41 million , bagful will loose too. Else both will make money.LOL
There are 168 M common shares, but no preferred.
Salinas' Inscrutable Circuit City Strategy
Ruthie Ackerman, 11.20.08, 10:25 PM EST
Mexican investor avidly scoops up shares in foundering U.S. retailer.
CIRCUIT CITY STRS
01/13/2009 12:40PM ET$0.22-$0.11-33.33%
1 day3 mo1 yearAdvanced
At A GlanceChartNewsPeople
BATS Real-Time Market Data by XigniteRicardo Salinas Pliego looks at Circuit City Stores and sees something that others don't. He merrily bought shares in the company as it was spiraling into bankruptcy, building up a 28.1% stake in the ill-fated retailer, which he seems to like.
Salinas is "banking on a great trademark, which is Circuit City," Luis Nino de Rivera, a spokesman for the media conglomerate Grupo Salinas, told the Associated Press this week. "That's a very important name in the retail industry in the United States and it has great value," he said. "There's a great market opportunity here that certainly has to be looked at in detail," Nino de Rivera said.
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Yahoo! BuzzWell, maybe. But Salinas won't be running it anytime soon. In 2006, he reached a settlement on fraud charges with the U.S. Securities and Exchange Commission related to an alleged scheme to conceal related-party deals between a subsidiary of his television company and a private firm he secretly co-owned. He agreed to pay more than $7.0 million to settle the accusations, without admitting or denying guilt. As part of the settlement, he also agreed not to serve as an officer or director of a publicly traded U.S. company for five years, according to an ownership filing with the SEC on Thursday.
Also interesting is the $41.4 million pricetag on the Circuit City shares. Salinas purchased a total of 47.2 million shares, which works out to an average price of 87.7 cents. But the shares haven't traded that high since Sept. 30, and the filing says that some of the purchases were made after the bankruptcy petition on Nov. 11. (See “Final Chapter For Circuit City?”) So Salinas must have bought some of his shares before the end of September and at high prices relative to the 23.5 cents Circuit City (other-otc: CCTYQ - news - people ) currently fetches.
The filing said Salinas, who owns Mexico's TV Azteca (other-otc: TAZTF - news - people ) broadcaster and retailer Elektra , bought the shares “with a view towards possibly seeking influence over the management, business and operations” of Circuit City. “However, no decision in this regard has yet been made,” according to the document.
The filing also said Salinas might acquire additional shares and reserves the right to develop plans or proposals regarding the retailer. It added that he may consider participating in transactions that are part of the Chapter 11 proceeding.
The retailer has said it hopes to emerge from Chapter 11 in the first half of 2009.