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Non-Tech : Circuit City (CC) -- Ignore unavailable to you. Want to Upgrade?


To: Tim Davies who wrote (1)9/2/2002 2:48:59 PM
From: Nutty Buddy  Read Replies (1) | Respond to of 9
 
Hi Tim,

The best time to buy a sector is when they "appear" to be in bad shape. They both currently have decent cash flow. Circuit City has the upper hand on debt-to-equity, virtually nil. That's why I believe they have the upper hand in a slowdown period. Their price-to-revs number is lower than many other retailers - many other stocks for that matter - CC 0.30, BBY 0.33 - of course they both have low margins though.

I believe consumer electronics has a never ending growing demand in today's society. Demand for digital TV is certainly growing. Just look at the recent growth in selection in the stores.

Lastly but not leastly, I like the chart pattern for the sector:
home.mindspring.com

Buddy