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Cramer on Circuit City (CC): Stock Will Not See $6 Again
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On this afternoon's Stop Trading!, Jim Cramer was extremely bearish on Circuit City (NYSE: CC), which has recently been a very popular stock on Wall Street as Blockbuster (NYSE: BBI) made an offer to acquire the company on April 14th.
When Street Signs host Erin Burnett asked Cramer "What is there?", referring to reasons to be in Circuit City's stock, Cramer simply said "There is no there there." Cramer told viewers to sell shares of Circuit City and mentioned that he didn't believe the stock would see $6 again. In fact, Cramer said investors "would be lucky to get out at $5."
Continuing on his rant, Cramer admitted that he thinks Blockbuster "wrecked itself" by putting in its offer for Circuit City, as Blockbuster, according to Jim, has finally started doing things right.
Shares of Circuit City are up $0.48, or about 10%, to $5.27 an hour before the market close. [BCS]
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Comments
Kramer is Shorting CC
As he really got nailed by the merge going to be pushed by both shareholders of BBI and CC, holding short position on CC, he's about to be knocked big time, as while BBI is offering 6-8$ to CC share, and as CC board said that it won't compromise to any offer that won't suit its' true condition, we can understand that the bargaining as just began, and we're about to see BBi being flexible a bit, raising its' basic offer towards 8.50-10$. My guess, Kramer is stuck with shorters, and CC will reach around 6$ towards Mid May, and 7 towards the end of it.
Cramer is right!
I agree with Cramer. Blockbuster is shooting itself in the foot with this stupid move to buy Circuit City.
Idiot
Thanks Cramer I just bought. It will hit 8 plus after the sell. He must be short.
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Cramer is wrong
Malcolm on May 11, 2008 08:18 PMCircut City is going to hit at least 7$ after they sell! I am going to buy more shares