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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 (10702)	3/28/2007 2:09:30 PM
From: Smiling Bob	Respond to of 19257

Wonder if RSH and CC would merge Both cutting fat and stripping down, so a "consummation" might be ahead. Interesting comments apply to RSH as well. The low hanging fruit has been picked and there are clouds on the horizon. --- Circuit City Shares Up on Savings Plan Wednesday March 28, 1:08 pm ET Circuit City Shares Rise on Plan to Cut Down on Expenses NEW YORK (AP) -- Shares of Circuit City Stores Inc. rose on Wednesday, after the electronics retailer detailed a plan aimed at cutting expenses, including replacing 3,400 staffers with lower-paid personnel. The company said it would lay off 3,400 U.S. store staffers and rehire for the positions as part of a "wage management initiative." It also said it would outsource its information technology infrastructure to International Business Machines Corp., eliminating 80 jobs and shifting 50 of them to IBM. The entire plan is expected to save $110 million in expenses by fiscal 2008 and $140 million annually from fiscal 2009. However, for fiscal 2007, the company lowered its net sales and same-store sales expectations, and said it expects sales "volatility" in the first half of the year, due to the changes. Jefferies & Co. analyst Timothy Allen said in a note on Wednesday that Circuit City's period of profit from flat panel TVs is likely over on a cyclical basis, which could hurt Circuit City's earnings. He cautioned that since part of the cost-savings under the plan will come from replacing higher paid workers with lower ones, "it is possible that in-store service levels could inhibit future service levels." "Today's announcement is likely to support Circuit City's shares through the first half of 2007," he wrote. "Thereafter, operating results will need to show the anticipated improvement." He rates Circuit City "Hold." Shares rose 50 cents, or 2.7 percent, to $19.38 during afternoon trading on the New York Stock Exchange. The stock has traded between $17.02 and $31.54 during the past 52 weeks.