Why New Financing Is Crucial to RadioShack

Reuters has reported the breaking news that RadioShack (NASDAQOTH: RSHCQ  ) has received several offers for new financing. Much of the volatility around the stock has been centered on the company's debt financing, as investors wait to see the financing terms and how much debt the company takes on as it continues to eye its turnaround strategy. In this video, Motley Fool consumer goods analyst Blake Bos tells investors who some of the possible lenders are, what the key metrics to watch will be with the financing deal, and what aspects of the business strategy are essential to emphasize for the turnaround to succeed.

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  • Report this Comment On October 05, 2013, at 8:15 PM, neamakri wrote:

    what is the turnaround strategy? RS is stuck in the 1960's business mindset. Ketchup bottle radios are no longer viable. I think the only thing keeping them alive is cellphone residuals.

    Laying off employees and screwing franchise owners can only go so far, AND will hurt you later.

    Here's what I'd do if I were in charge: (A)put smartphone displays totally in front of each store. Sell smartphones! (B)buy Brookstone, Hamacher Schlemmer (and Sharper Image) etc. (C)get Segway products in every store! (D)fill airplane seats with catalogues about your new store products.

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12/31/1969 7:00 PM
RSHCQ $0.00 Down +0.00 +0.00%
RadioShack CAPS Rating: *