Is RadioShack Really This Cheap?

Today, analysts Austin Smith and Andrew Tonner discuss how cheap RadioShack looks right now. The company's current assets less its liabilities are actually more than its market cap, a key sign for value investors. While it certainly seems cheap enough to be a value play, Austin feels like this is a turnaround story that's always around the next corner. Ultimately, the company may not be as cheap as it seems, and its push towards mobile, while keeping the company relevant with the times, has also destroyed margins and has little competitive advantage.

Buying companies on the cheap is a recipe for long-term wealth-building, but there are better bets than RadioShack. In our free report "3 Stocks That Will Help You Retire Rich," we reveal some better picks as well as some winning wealth-building strategies. Click here to keep reading.

 

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and RadioShack. Motley Fool newsletter services recommend Amazon.com. 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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