Circuit City Group (fka CCTYQ)

[jibberjabber]

No one can advise you to buy or sell CCTYQ. You need to seek professional financial advice.

This is why I am back in at this level.

1. August, Less than $50 million on the books.
2. September, over $300 million on the books now. That is $300 million cash, in the bank!
3. Another $73 million this month.

Now they are sitting on well over $376 million in cash.

That is why I jumped back in.

Is it going to be enough is the the big question.
Where did all this money come from? Why was it not included in accounts receivables on their balance sheets?
How much more money is going to hit the books in CCTYQ's favor?

For those who are reading the balance sheets, don't accept the fact all the liabilities need to be recovered in full. Remember, they are in Chapter 11.

Many of those debts have already been negotiated for @ .20/dollar.
How much of the debt is going to be completely discharged?
How much of the debt is going to fall under the category of Preferences? That is where the trustee goes after money that the company paid out prior to the Bankruptcy. It could be quite a bit because CCTYQ was paying mostly cash to many of its creditors at that time cause many of the creditors would not extend them anymore credit. This number could possibly make a dramatic impact on their bottom line. A prime example is this first case where they are attempting to retrieve nearly $20 million plus legal fees from AdMedia.

Keep in mind, it is still a gamble. These three things could still happen.

1. Shares could be cancelled. That is part of the current plan, but there has been a reprieve/delay. Next deadline on it is December 21, 2009, but I am expecting them to push it back further because I am reading their other hearing dates and someone of them go on well into April, 2010.
2. There may be some money left over for shareholders. At this time, base on the current plan in place, they are saying there will be nothing left for the shareholders.
3. Reverse Merger. Yes, another scenario, highly unlikely, but still possible because the shell itself is a shell that has no debt against it. This is the one I would like to see happen because it is the one with the greatest potential. JMO