NEW YORK (AP) -- RadioShack's stock is trading below $1 per share for the first time in its history — and has the investment world wondering if it will eventually be delisted.
Shares of RadioShack Corp. fell 9 cents, or 9 percent, to 94 cents in Friday afternoon trading after falling as low as 91 cents per share earlier in the day. The New York Stock Exchange could delist the stock if it closes below $1 per share for 30 consecutive trading days.
The stock is well below its all-time high of $79.50 set in December 1999. Since then, RadioShack has had trouble finding its place in the evolving retail and technology landscape.
Hmmm.... Alot of debt and not profitable. Doesn't fit my buy criteria but maybe worth a gamble under $1 like a lottery ticket. If the turnaround is successful (and quick like within the next 12 months), it could shoot up to $5. Alot of retailers have been here before like Pier 1, just to name an example, and it was in much more dire constraints. I'm too chicken to buy though....
Call me crazy but took a long spec position in RSH today at $0.85. Sentiment seems way too negative here and I think even in a worst case scenario (bankruptcy) there will still be an exit near this price at some point (as there always is with rumors and innuendo during bankruptcy).
Looks like it is working for you so far. I thought about it too but can't get too many irons in the fire. I'm short WLT and long coffee. Wheat is starting to look interesting (can trade the etf WEAT if no futures account).....below $6 a bushel. Apparently Warren Buffet's railroad is under orders of the Transportation Board to answer why they are not fulfilling their obligations to get last year's wheat out of the elevators. They need room for the new crop and the old crop is starting to rot. The railroad blames it on the hard winter and the demand to move the Balken oil.......moving oil probably pays better.....and maybe Buffet is getting long wheat.
I posted my thoughts on SA about RSH. Long term wheat goes higher, short term I have no clue. WLT I think is a risky short as it could move up quickly. Its a company I'm frequently playing long but have no position in at the moment.
RSH has had in nice little run since the bottom call. Probably will bounce around a buck for awhile. Lots of volume. I'm too long in TRMR to buy in at any substantial amount. I'm going to watch RSH and probably be kicking myself for not buying in now (as the holiday season approaches).
I don't think that earnings will be next monday. First of all they never host them on monday, almost always thursday. Secondly they announce generally 2 weeks prior.
Thanks. I'll take a stab at my earnings guess tomorrow. I think sales will be below expectations but EPS in-line or above expectations thanks to cost cutting (which Hoby seems to be very good at). Sales guidance unchanged for the year. Gross margins down 100-200 bps due to pressures from Wal Mart. Hoby will blame a weak teen shopping environment and continued online struggles (still no new website or online strategy) and cold domestic weather. Lets see.
Interesting. Looks like a continuation of the slow methodical turnaround story. Last earnings, there was a rediculous jump the day after and then the eventual sell-off. Maybe this call and guidance will bring some stability to SKUL somewhere in the 8-9's for now.
Or it could spike today, then sell off and slowly erode down a buck or two until the next earnings call. Just like it did after the last quarter's earnings call.
Looks like Hoby may be steadying the ship, but he'll need to do more for the SP to justify the valuation, even at $7. As always with SKUL, everything rides on the earnings reported for the 4th quarter of the year, which is make or break for the company. If the 4th quarter is good, then Hoby is genuinely turning the company round, if not well.....