July 13, 2012
Today, Austin discusses RadioShack's (NYSE: RSH ) enormous 60% crash thus far this year. Unfortunately for the electronic goods retailer, this could be a long-term problem. In addition to competing in a slowly deteriorating sector, RadioShack recently entered the mobile market. This move will force the company to slash margins, and it does not have the top-line growth to compensate for those losses. Most of all, though, it simply cannot produce a winning model. Companies like Amazon snatch revenue from traditionally profitable areas such as headphones, and razor-thin margins will sink the company. Austin thinks the slide reflects the direction of the company.
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