RadioShack Left for Dead
About this time back in 1980 RadioShack (RSH) was at $2 a share. History is repeating itself. The Shack had to reinvent itself back then, now it has to repeat the process.
MarketPlace ran the following story yesterday about it's 90 year history and the re-invention of the retailer (click below to listen):
They have to do it again and traders are bailing on the company. RSH shares have been crushed this week losing 25% in the past two days. The Street does not have any faith in the company, its share price tells the story.
RadioShack is closing more than 1,100 stores leaving it with around 4,000 left. They have too many locations. Consider the darling Best Buy and everything RadioShack wished it could be. Best Buy has 1,056 locations and 409 Best Buy Mobile stand-alone stores in the US. The amount of stores the Shack is closing is around the total number of Best Buy stores. Doesn't add up.
RadioShack just reported in the last three months of 2013 that it had lost $191.4 million, or $1.90 per share, compared to a loss of $63.3 million, or 63 cents per share, in the same period a year before.
The Hater-Aid is being poured, no dumped onto RadioShack right now.
Faith and patience is all investors have to go off of currently, it's not a lot. However at $2 a share, I believe we will start seeing some interest by High Frequency Trading Robots and Big Money.
The Shack isn't dead yet. They have the potential to get Americans to spend more than $3 a year at their stores buying plugs and cords. They need to stop attacking customers at the check-out.
"Can I have your zipcode. Can I have your email? Can I have your address? Can I have your blood-type?"
Time will tell if RadioShack can survive in an age dominated by Amazon.com. If JCP can turn itself around after almost being killed by Apple Star Ron Johnson then maybe RadioShack can do the same.
But if RadioShack brings in some Apple, Google, or other high profile douche they will die.
Place your bets. Please survive RadioShack, if not at least for my 80's memories to live on.
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