Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack
With that in mind, let's take a closer look at RadioShack's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Fort Worth, Texas (1899)|
|Market Cap||$2.1 billion|
|Trailing-12-Month Revenue||$4.42 billion|
CEO Julian Day (since 2006)
CFO James Gooch (since 2006)
|Return on Equity (average, past 3 years)||25.2%|
|Cash/Debt||$723.4 million / $677.8 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 53% of the 640 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward. These bears include All-Star minnjim1, who is ranked in the top 15% of our community, and mfoDon.
Just two months ago, minnjim1 touched on RadioShack's disappointing track record:
Radio Shack's management has been spectacularly unable to achieve success during three decades of massive electronics gadget, computer and internet revolution. With all that going on in the market, they have just barely been able to hang on. I will miss them when they depart the malls and strip malls of America.
Fools remain skeptical about how RadioShack can differentiate itself in the increasingly competitive consumer electronics space. Over the past five years, RadioShack's bottom line has steadily declined (-8.3% per annum), while electronics stores Best Buy (5.6%) and hhgregg
CAPS member mfoDon elaborates on the bear case:
When was the last time you actually went inside a Radio Shack? Yeah. Me too. Perhaps a merger would bump the stock but, really, what would a buyer be getting? Small footprint stores in malls that already have cheaper rents and include custom build-out for new lessees? Hard to see the 'Shack as anything but another icon slowing becoming as relevant as vinyl and CDs.
What do you think about RadioShack, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Amazon and Costco are Motley Fool Stock Advisor selections. Costco is also an Inside Value choice, as is Wal-Mart. Wal-Mart is a Global Gains recommendation. The Fool owns shares of Wal-Mart and Costco. Try any of our Foolish newsletter services free for 30 days.
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