1 Big Reason RadioShack Crashed

Today, analysts Austin Smith and Eric Bleeker discuss RadioShack's collapse. The company lost big on earnings, and shares sank after the company suspended its dividend to save cash. With a poor business model and shrinking margins, RadioShack looks like a classic value trap.

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Austin Smith owns shares of SUPERVALU. Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of RadioShack and SUPERVALU. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On July 26, 2012, at 7:26 PM, BenFE08 wrote:

    Radioshack crashed and will continue to crash because of total incompetent upper management. You have money people trying to run a retail company and they simply do NOT know what they're doing. When the BOD brought in Julian Day and Day brought Jim Gooch with him from Kmart, the crash started. Neither had any retail management experience and neither knew their head from their rear about how to actually run a retail company. They brought people with them from failed non-retail companies.

    Incompetent upper management is WHY Radioshack has crashed and burned.

    And the BOD has allowed this stupidity to go on for too long.

  • Report this Comment On July 27, 2012, at 6:47 AM, jayfitts99 wrote:

    They were over priced on all there items !

  • Report this Comment On July 30, 2012, at 9:04 PM, mattysmitty wrote:

    RadioShack needs to make an app and get with the times. There stores would be fantastic as a local shipping location for a much broader scope of electronics. Your floor space is now online, RadioShack has an advantage with the small store layout, IMO. Clean it up!

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