Blockbuster Buying Circuit City – Crap Plus Crap Equals Crap

The only thing remotely exciting about Blockbuster's continued pursuit of Circuit City is that bagholding investors of Circuit City may have a chance to get out of this landslide. Circuit City shares are down about 80 percent from a $17.97 high in the last year. Befuddled is an understatement in trying to figure out how this cockamamie idea ever came about.

After a bit of silence on this “amazing” business idea, Friday, May 9th, 2008 gave way to Circuit City shares rising 8.3 percent on Wall Street after Circuit City Stores Inc. said it would allow Blockbuster to review the accounting books.

Lehman Brothers analyst Michael Lasser politely mentioned

Circuit City's problems would likely be worsened with a deal with Blockbuster Inc., which is facing it's own turnaround issues .

Let us translate Mr. Lasser's words so you can explain this to your friends

Blockbuster buying circuit city – Crap PLUS Crap EQUALS CRAP

So what would help Circuit City? We think that Deutsche Bank North analyst Mike Baker said it best. Here is an excerpt:

Already a share gainer in the space, we believe store closures could positively impact same-store sales and overall profitability...

Yes, if that does not ring loud enough, Circuit City could do better if they started closing up shop. There is nothing blockbuster about this zainy idea.