Circuit City Being Sold Soon?

On March 11th Goldman Sachs (GS) made an announcement that may give light into the future of Circuit City (CC).

An analyst note removed price targets for CC’s stock saying Goldman is “acting as a financial adviser in connection with a strategic transaction that is fundamental to the reasonable analysis” of Circuit City’s stock price.

Hmm

But, Circuit City spokesman Bill Cimino said yesterday the “strategic transaction” referenced is an ongoing effort to sell the company’s InterTan unit, a Canadian electronics retailer purchased from RadioShack (RSK) in 2004.

He continued..”Last year, [the process] was put on hold for the holidays, then it started back up.” Goldman’s withdrawal of its stock rating “is really in connection with that.”

Well, if that is true, why didn’t Goldman withdraw its price targets from CC’s stock then? Shouldn’t they have done so? Why wait 6 months? It does not make sense.

The timing of investor Mark Wattles’ recent agitation and the Goldman change must leave one to think this has nothing to do with the Canadian unit. We can assume this if for no other reason than CC says it is so.

We can assume that something is in the works……

Disclosure (“none” means no position):None