| Management blunders cause Circuit City stock to short out
Dear W.T.: In 2003 my daughter Hilary defended a trio of bozos who one evening tried to reduce the electronics inventory of a Circuit City store (CC-$9.05). Neither was successful, but her subsequent visits to that store resulted in the purchase of a large-screen TV and 200 shares of Circuit City stock at $4.50 per share. Hilary has a nose for things, which I wish I had. Two years later, CC was trading at $20, and in April of 2006 she sold her 200 shares at $30.50. When I asked Hilary why she sold CC, she said she thought their customer service was lacking and that it was more fun to shop at Wal-Mart, Costco or Best Buy. She also believes management, with whom she's crossed swords, "is a few atoms shy of a molecule." I couldn't agree more. These are the same people, who in May of 2006 canned 10 percent of their top salespeople because they were earning too much money.
Retail sales weakest for a year
Retail sales slowed to their lowest level for almost a year last month as rising interest rates and a slowing housing market hit consumer confidence, figures have showed. Data from the British Retail Consortium (BRC) revealed that like-for-like retail sales in the UK rose by 1% in October - the weakest growth since last November. Figures from the monthly survey will reinforce the case for an interest rate cut coming just a day after data showed a sharp drop in manufacturing output and a surprise softening in the services sector. Rate setters at the Bank of England are set to begin their two-day meeting to decide on interest rates on Wednesday. The latest retail figures could put further pressure on the Bank's nine-strong Monetary Policy Committee to ease rates back from 5.75%.
Unversity Place litigation settled
A settlement has been reached in litigation over the University of Idahos failed University Place real estate project in Boise. Under its terms, the UI Foundation will pay $2.5 million and the various parties insurers will pay $5.8 million, for a total $8.3 million mediated settlement. Of that, $5.8 million goes to the foundations Consolidated Investment Trust, and the other $2.5 million goes to the university. In a joint statement, the parties, who include law firms, insurance companies, the UI Foundation board, and former UI officials including former President Robert Hoover, said, The settlement is a reasonable resolution of an extremely complex matter, avoids substantial future litigation costs, and is in the best interest of the University community. The amount being paid by each party is being kept secret.
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