CC. Would Ben Graham buy this? Will I buy it?

I think the answer to the first question is yes. The second is a little bit of a guess.

Circuit City is bad business. But right now it is worth more dead. That is right. I will bet money that Lampert is buying this as we speak.

These are from Google unfortunately:


It has 423 MM in cash, 300 in AR (I assume these are good), and 1800 in inventory. For total current assets of 2500 + or - 300. Liabilities of 1800. That gives you from 700 to 1000 MM in Net Net assets. This guy trades for 1.5 billion with minimal long term debt. I am not calculating it out because I am lazy but fresh and I calculated the PV of the leases one day in 15 minutes and I remember it being about 9$ per share positive. This is a Ben Graham special.

Now, I hate Circuit City. But the economics say that Lampert is buying this. It would not shock me at all. It obviously has more worth with the inventory liquid and the real estate as a Petsmart, Best Buy or Kmart for that matter.