1-Star Stocks Poised to Plunge: RadioShack?

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack (NYSE: RSH) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at RadioShack's business and see what CAPS investors are saying about the stock right now.

RadioShack facts

Headquarters (Founded)	Fort Worth, Texas (1899)
Market Cap	$2.35 billion
Industry	Specialty retail
Trailing-12-Month Revenue	$4.22 billion
Management	CEO Julian Day (since 2006) CFO James Gooch (since 2006)
Compound Annual Revenue and Net Income Growth (Over Past 5 Years)	(2.3%) and (10.4%), respectively
1-Year Return	128%
Cash / Debt	$856.7 million / $687.7 million
Competitors	Best Buy (Nasdaq: BBY) Wal-Mart Stores (NYSE: WMT)
CAPS Members Bearish on RSH Also Bearish on	Lennar (NYSE: LEN) Ford Motor (NYSE: F)
CAPS Members Bullish on RSH Also Bullish on	Apple (Nasdaq: AAPL) Microsoft (Nasdaq: MSFT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 55% of the 595 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward. These bears include PatrickDickey and mpapile.

Earlier this year, PatrickDickey expressed concern over RadioShack's shocking prices: "As much as I like the products and services, and am a customer when I need electronic components, their prices are too high. ... Unless they can revamp their image with quality for price or lower price on the quality that you're receiving (which is on the upper-end), I don't see their stock outperforming the S&P."

In a pitch from late last month, mpapile also criticizes the company for thinking too small:

Radio Shack or "The Shack" has increased their profit the Circuit City way by forcing out higher paid employees in lieu of unknowledgeable lower priced employees. People who are not very good with electronics go to Radio Shack for help, and those that know a lot do not pay $50 for a cable that costs $3 on monoprice.com. So they are killing their core business.

What do you think about RadioShack, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!