by Ziggy Keane

Created on: May 28, 2009   Last Updated: June 01, 2009

Circuit City was purchased by Systemax Inc. (SYX) on May 19, 2009. Systemax Inc. plan to retain the image, brand, trademark, and website of Circuit City, and this will not be a re-branding process.

Although Circuit City may experience a slight slow-down in sales, the fact that its image and infrastructure will remain intact means that its market share loss, if it does occur, should be temporary, as its old customers will likely continue to buy from this familiar location unless drastic changes are made.

This is bad news for other retailers who were hoping to take advantage of Circuit City's demise, such as regional outlets such as hhgregg (HGG) and Conn's (CONN), and nation-wide brands such as WalMart (WMT) and BestBuy (BBY).

From a buyers perspective, as mentioned above, Systemax Inc.'s decision to maintain as much continuity as possible during this transition period means that long-term nothing much has changed in this industry.

For those looking to invest in electronics, Systemax Inc. (SYX) is not a bad bet. With this new acquisition, Systemax Inc. has increased its involvement in the electronic sector, and with the price currently sitting around the $12 mark, it is low enough that you know it's going to bounce back (the price was $18.30 on the 30th of April).

In contrast, BestBuy (BBY) is a more dangerous choice right now. Sitting at $35.27 today, it is well above the lower range of its fluctuation (in late February and early March the price sat at around $24). This is an example of a company enjoying a temporary gain following Circuit City's problems - expect Circuit City to make up lost ground over the coming months. Sell if you have BestBuy (BBY) stock if you're not in for the long-term.

WalMart (WMT) is priced at $49.45 today, and is always a good bet for investors. The diversity of its products, and the competitiveness of its prices means that it is custom built for this depressed economy. With stock valued at over $60 just a few months ago, this company is at a low ebb right now and will recover. Electronics are of course only part of the equation however.

hhgregg (HGG) is not worth a gamble right now. They are a smaller regional outfit and lack the resources to deal with this struggling economy. Their price is $17.17 which is at the high end of their ebb, considering their stock sold for as little as $3.57 a few months ago.

Conn's (CONN) is a regional outfit as well, although with their price sitting at $11.81, they are worth a gamble considering their price hit $17.70 only a couple of months ago.

Ultimately, Systemax Inc. (SYX), WalMart (WMT), and Conn's (CONN) are the best options for buyers looking to invest in electronics right now, while BestBuy (BBY) and hhgregg (HGG) are riskier ventures.

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