Circuit City Gets De-Listing Notice

When your share price is cheaper than the Snickers Bars you are handing out for Halloween, you've got a problem.

Circuit City Stores (CC:) said late Thursday it received a notice from the New York Stock Exchange last week that the company was not meeting the exchange's price criteria because the average closing price of the company's common stock was less than $1 over a 30-trading-day period as of Oct. 22. According to NYSE regulations, the company must notify the exchange within 10 business days of its intent to remedy this price deficiency. 

There is a double problem here. Who will buy a product from CC this holiday season if they fear a BK filing? Should CC file, their warranties are invalidated and consumers are left holding the bag. This will be the straw that broke the camel's back for CC.  It also is not good news for Best Buy (BBY) & Wal-Mart (WMT).  For those willing to go without the warranty, they will wait it out to see if CC makes it before buying, hoping for a liquidation sale. This will drive down prices industry widefor all electronics sellers.