How to Invest in Struggling Retailers

For those investors looking at some of the biggest names in retail such as Best Buy (NYSE: BBY  ) , Radio Shack (NASDAQOTH: RSHCQ  ) and J.C. Penney (NYSE: JCP  )  and watching these ailing companies struggle to find the right ingredients for a turnaround, Motley Fool analyst Blake Bos has some advice. He talks about how it might be a good idea to hedge your risk by buying a basket of stocks rather than one, and by making this a small rather than a large part of your portfolio, as retail is a very volatile sector right now. He also suggests buying protective puts or selling covered calls on these stocks as ways to mitigate some risk or increase your returns, but warns that using an options-based approach is something you should understand fully before you pursue it.

Many have written off any chances for RadioShack's revival, but the brand has been around for more than 80 years and survived numerous technological disruptions during that time. The question is: Can RadioShack survive in today's new retail environment? To help answer that question, we've compiled an in-depth premium report covering all the opportunities, risks, and specific issues that every investor should be aware of before deciding whether RadioShack is a buy or a sell. Simply click here now to claim your copy and start reading today.

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  • Report this Comment On December 06, 2012, at 3:10 PM, BenFE08 wrote:

    RadioShack COULD survive IF they get a savy retailer as a CEO and get rid of the Blockbuster personnel deadwood that they brought into the company via Bryan Bevin, x-VP StoreOPs. They COULD become competitive again IF they start to have competitive prices, matching BB and other CE companies. For example - BIGGGGGGGGGGGG SELLERS for BF was big screen TVs. RSH has them on their website but didn't even come close in price. In fact, they didn't even have what few they do have on sale at all. Granted, it's low profit margin, BUT this is what the consumer wanted for BF!!! And RSH is CLUELESS!!!!!!!!!!!

    The cell phone world is totally saturated and the fact that their past two CEOs were CLUELESS to this shows they have no true EXPERIENCED captain at the helm.

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10/21/2016 4:03 PM
BBY $39.46 Down -0.02 -0.05%
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JCP $8.84 Up +0.18 +2.08%
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RadioShack CAPS Rating: *