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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (10213)	6/21/2006 8:46:56 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

CC- the inevitable post-earnings reassessment always good for drop. RSH knocked as well. Sector Wrap: Electronics Retailers Tuesday June 20, 4:27 pm ET By Shaila Dani Consumer Electronics Retailers Close Trading Mixed; Circuit City Margins, Outlook in Focus NEW YORK (AP) -- Conusmer electronics retailers ended Tuesday's session mainly in the red, led by declines in Circuit City Stores Inc. and Dell Inc. shares, which each closed down more than 1 percent. Despite reporting better-than-expected earnings results on Monday, Circuit City Stores Inc. shares shed 36 cents, or 1.3 percent, to close at $28.27 on the New York Stock Exchange. While store improvements and booming sales of digital televisions helped increase first-quarter profit, two analysts noted the earnings report showed lower-than-expected gross margins due to increased promotional financing costs and a drag from remerchandising costs for Canadian stores. Circuit City's conservative guidance and talks of ongoing investment also dampened investor enthusiasm for the stock. Still, Mitchell A. Kaiser of PiperJaffray reaffirmed an "Outperform" rating and $40 target price, and Citigroup analyst Bill Sims reiterated a "Buy" rating and a $41 target price in a note to clients. Sims said digital television sales, video game product cycles, a new target-based management compensation plan and accelerating sales support his view. In a phone interview, Sims noted that Circuit City's first-quarter performance showed gas prices, rising interest rates and other environmental factors are not affecting the store's sales. Sims lowered his second- and third-quarter outlooks due to the company's plan to invest in new systems, innovation and multi-channel growth. But the analyst raised his fourth-quarter forecast, which kept annual forecasts steady. "We believe the company remains in the very early stages of its turnaround and expect at least another two or three years of abnormal earnings growth," wrote Sims. Meanwhile, shares of RadioShack Corp. inched down 5 cents to close at $14.42. Gary Balter, an analyst with Credit Suisse, reaffirmed a "Neutral" rating on Tuesday, but lowered the stock's target price to $15 from $18. He said poor decisions made by past managers have hurt shares and reduced customer traffic to stores. "In our opinion, given that it appears the company may have close to zero free cash flow this year, seems to be in a virtual negative sales and earnings spiral, and may not pull out of it this year, this stock can go lower near-term," wrote Balter. Round Rock, Texas-based Dell Inc. followed its peers lower as well. Shares of the world's largest direct-sale computer vendor fell 39 cents, or 1.6 percent, to close at $23.67 on the Nasdaq. Target Corp. shares closed down 6 cents at $49.04. Only Best Buy Co. and Wal-Mart Stores Inc. ended the regular session higher, with Best Buy shares up 20 cents to $52.93 and Wal-Mart gaining 16 cents to $48.43. Both stocks trade on the New York Stock Exchange.