Circuit City Stores Inc. (NYSE: CC) seems to be falling into the abyss of no return. Quarter after quarter, the retailer continues to lose money and disappoint the market. Its shares have been hovering below $2 for a while, and yet no suitor has lined up to buy the company after BlockBuster's recent sub-$1 billion pullout. Still, are things that bad for Circuit City that it can't even give the company away?

Yes. HBK Investments dropped 754,000 CC shares and flooded the market Wednesday with a decent position of Circuit's public shares. Just a few days ago, competitor Best Buy, Inc. (NYSE: BBY) said that its Q2 profit was dragged down 19% due to the cash needed to roll out its Best Buy Mobile concept to its 1,000 stores in North America. Still, the market didn't like the largest consumer electronics chain reporting a profit slide.

As a result, shares in Circuit City sit at $1.54 this morning, the lowest share price in over five years. In fact, you've earned a healthy -86% if you purchased CC shares in August 2003. Nice investment, yes? Although, let's give the retailer some credit in this year's bear market, but still.

HBK's sellof this week drops its position in the struggling retailer from 9.15% to 8.7%. I am surprised HBK wants to own any of this retailer, but it's probably waiting for another offer so it can sell the remaining shares at a premium. It's pretty sad that a premium on Circuit City's shares would be perhaps $2.50, right?

During a visit to a local Circuit City location this week, there were a total of two customers in the store -- and eight employees. Yes, Circuit City is going places.

There is no holiday break for the rumor mill as word of many a company's activity is bantered about.



BUILD-A-BEAR WORKSHOP INC (NYSE: BBW)

As the stock shot up 14% the other day, it was revealed that the warm and fuzzy big bear hired Lehman Brothers to "explore strategic alternatives." Some analysts think an LBO is what will happen, and range the valuation at from $34 to $36. Very recently the company reduced its second quarter per share profit expectations to 7 cents to 10 cents, down from 15 cents to 19 cents, because of slow sales at stores that have been opened for at least a year. Here's a bear to be bullish on.


COUNTRYWIDE FINANCIAL CORPORATION (NYSE: CFC)

It's troubled times for the nation's largest mortgage lender. Earlier in the week the shares began to fall when it was revealed that they may be a part of a government investigation into subprime loans. It certainly doesn't help that three former company executives pleaded guilty to conducting insider trading in shares of Countrywide. The heat is on.


THE STEAK N SHAKE COMPANY (NYSE: SNS)

Two Texas investment groups, HBK Investments and Lone Star Funds, who between them own about 9.5% of the company, are said to be interested in digesting the whole dang thing. The 490 restaurant chain that has operations in 20 states just saw their most recent quarterly profit drop 30% from the previous year, as same store sales fell 4.7%. Gentlemen that they are though, they'll only pursue the sizzle if the board cooks it up with them.



STILL FLYING AROUND


WENDY'S INTERNATIONAL INC (NYSE: WEN)

They say they may want to sell the company, and the latest firm to gobble up shares is Tudor Investment, purchasing a 6.1% stake.


TD AMERITRADE HOLDING CORPORATION (NASDAQ: AMTD)

Jana Partners and S.A.C. Capital Advisors, who have about an 8.4% combined ownership of AMTD, are keeping the pressure on for the firm to partner up with another brokerage firm, and have now formalized their demands.



BUZZ


DJO INCORPORATED (NYSE: DJO): MMI Investments purchased 9.4% of the company's shares. When they buy in, they usually see the company acquired...Pride International Inc (NYSE: PDE): Spin off of foreign assets, or a possible takeover, has attracted interest...Legg Mason Inc (NYSE: LM): Pershing Square Capital, whose activist leader William Ackman has tried to push around McDonald's Corporation (NYSE: MCD) and Wendy's, has taken a 1.5% share of the company.