Can RadioShack Corp. Pull off a Best Buy-like Turnaround?

To those that have been following events at RadioShack Corp. (NYSE: RSHCQ  ) it is clear that the troubled consumer electronics retailer is in need of a serious turnaround. Events have become so dire, in fact, that many are calling for the company to throw in the towel and enter bankruptcy court in order to more effectively deal with its more than $1.3 billion dollar debt load. To those shareholders that have stuck around thus far, many are no doubt hoping for a Best Buy (NYSE: BBY  ) -like turnaround. Throughout 2013, thanks to a solid comeback marshaled by the company's CEO Hubert Joly, Best Buy saw its share price more than triple making it one of the best performing stocks in the S&P 500 Index. Given that both companies operate in the consumer electronics retailing industry, can RadioShack pull off a similar turnaround? Motley Fool Consumer Goods Analyst Sean O'Reilly details the important facts and gives Foolish investors an idea of what to expect from the beleaguered retailer. 

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  • Report this Comment On May 21, 2014, at 2:13 PM, Frankly wrote:

    The best advice I have for Radio Shack (RSH) investors, is to go to the nearest store and talk with the employees. It was interesting to hear from employees that some stores have already closed. Some of the new stores are getting into areas Radio Shack should be in such a Cell Phone Repair and home wireless networking.

    Reading the information and the plans that management has for the company, it looks like they are implementing that vision.

    Just stop to look at a company like CPR (Cell Phone Repair). These stores are growing and as we are learning with Smart phones, they are getting more expensive and need repair all the time. It is cheaper to repair them than to buy insurance. As the phones have matured, people will begin to keep them longer. Just look at how the carriers such as AT&T, T-Mobile and others are changing their plans and keeping the equipment separate. We all know, when our phones break, we don't want to send them out in the mail. We want to go someplace and get it back quickly. Radio Shack with over 3,000 locations less the ones that should be closed is in a perfect position, better than any other to roll out and capitalize on the cell phone repair business!

    So I say to the investors and creditors too, go to the stores. Look around and see what's happening.

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Related Tickers

8/28/2015 4:00 PM
BBY $35.97 Up +0.17 +0.47%
Best Buy CAPS Rating: *
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RadioShack CAPS Rating: *