I Own RadioShack, and Here's Why I'm Not Selling

That's right, I do own RadioShack (NYSE: RSH  ) , and no, I'm not selling. While many are quick to point out the plethora of challenges facing RadioShack and its lackluster history, they'd be missing the big picture. At today's stock prices, RadioShack doesn't need to transform itself into an elite electronics retailer; it just needs to be a profitable one. If the new management team can accomplish that feat and maintain the Shack's retail footprint, investors will be rewarded for their patience. The company's most recent earnings call highlighted several initiatives that the company's turnaround plan (click here for a detailed analysis) is taking. In the video below, Motley Fool analyst Blake Bos tells investors the most important takeaways, and when they can expect to see results. 

Many write 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 specifics 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 May 09, 2013, at 12:06 PM, TelsaRowe wrote:

    This is blind foolishness at best. A brand being around 80 years is as relevant to its future sucess as myself being a decendent of Sitting Bull will make me a good indian warrior. Even their online business is f'ed with the new sales tax laws going into effect. They will be bankrupt sometime in 2014.

  • Report this Comment On May 14, 2013, at 2:02 PM, x000ald000x wrote:

    I bot RSH for one reason: it was 45% shorted and down to 1.6. The sentiment on the stock was universally negative. But at that price, the stock was selling at around $50k per store, aka liquidation value. In other words, the bottom was already in.

    When a stock is shorted to that extent, it is like a compressed spring. All it takes is any kind of good news or rumors to convince the shorts to cover. Even in the worst case of bankruptcy, the shorts still have to cover.

    So RSH, didn't have to become AMZN, they just had get a boost from the macro env or a find a hot product to bring. Or, they could have been acquired by AMZN AAPL or MSFT all of which are expanding their local retail locations. RSH just had to do one thing right--or stop doing things wrong.

    So today I am taking some profits at 4, but this old dog can still run higher. Short interest is still a hefty 35%.

    Call me a fool.

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