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RadioShack AO Message Board

  • bizzybyinn bizzybyinn Aug 27, 2002 8:08 PM Flag

    Still not oversold

    The technicals show RSH as weak but do not yet signal that RSH is oversold. Although I still believe this stock will trade into the teens, I am entertaining the possibilty that a short term reversal may occur near current levels.

    Having said that, I would not cover any short positions as the rally would likely stall after a couple of days. The latest gap down has done a lot of technical damage and this time has the analysts' attention.

    A broad market selloff fueled by additional perceived or real consumer worries would favor a downside move below $20, and this move would have RSH and other lesser retailers leading the way down.

    Suspect management is wasting more shareholder dollars at these levels to provide liquidity for the 7 or so recent major RSH downgrades that have pushed or will push individuals and institutions to unload the stock.

    I heard that the RSH stores are eliminating cordless phones as part of the latest attempt to again reinvent their retail space. Can anybody on this board confirm or deny this?

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    • RSH radar detectors have not been guilty of this since they quit making them. Now they are rebranded Cobra units.

      I'm a Valentine One consumer myself.

      read that document an weep. There are many others that must stop selling the units, not just RSH. RSH just gets to bad press since they are so big.

    • From this morning's SkyReport:

      Martin Disagrees with Radar Detector/VSAT Rules

      One commissioner dissented with part of the Federal Communications Commission's move to restrict the manufacture and import of radar detectors that interfere with certain satellite signals and products.

      FCC Commissioner Kevin Martin said the agency order "insufficiently" takes into account the impact of an aggressive implementation schedule for radar detector compliance. He said the timeline to eliminate non-compliant radar detectors will result in substantial economic losses for top radar detector retailer RadioShack.

      Martin said he agrees with the FCC decision not to modify the Aug. 28 deadline to stop the manufacturing or importation of radar detectors that do not comply with new emission limits. But given that RadioShack currently has an inventory of 85,000 noncompliant radar detectors in its U.S. stores and distribution centers, the retail giant's potential fire sale of the products "will cause RadioShack significant economic harm and extreme logistical burdens."

      The commissioner added, "RadioShack estimates the loss to be in excess of several million dollars from cut-rate prices on inventory and many millions more in lost sales."

    • Bel made most them for RS to RS's own cost-control specs ... Bel's own retail line meets the new specs. The simultaneously produced RS models don't.

    • "RadioShack-Branded Radar detectors are particularly noted for spurious emmissions"

      Timber, why would you say this when RSH's are simply a rebranded model by another major manufacturer. That manufacturer had the same problems. RSH lobbied for an extension because of the onhand quantity that they had already bought.

    • Not so many as you might think ... the RadioShack-Branded Radar detectors are particularly noted for spurious emmissions ... the source of the problem which prompted the FCC action. Most other recent/current-production detectors from other manufactures have for some time been built to comply with the stricter specifications (the specs have been known about for several years now). RadioShack was mentioned by name in the article simply because RadioShack has the most to loose ... they gambled on being able to lobby their way into yet another extension ... there have already been several ... and they lost.

    • Well, I can only assume RadioShack is in a rather large boat with other retailers. How many detectors are sitting on other retailers' shelves?

    • Thanks timber, agree on all points.

      I have friends that are trapped within the RSH morass and I have great sympathy for them. They are decent people who in no way deserve what they receive. They are only looking to make an honest living with some incentive for performance.

      RSH management has cut their employees' fingernails way too short and their pain can be felt on as they wail and vent.

    • I wonder about who you heard this from, or your intentions. Regular phones might be cut back significantly, but cordless phones are what everyone is buying. The stores I have visited say that they are getting out of the low end (disposable) phones and concentrating on high end phones. Panasonic and VTech multi-handset phones are being promoted now.

      I travel about the country (OTR driver) and visit RSH, BBY, and CC stores to kill time. RSH is easily the most dynamic of these three. The employees of RSH are the only ones that give a #$%$ about the customers. I could go on, but I wont.


      • 4 Replies to ryknield
      • Yeah, the Shack is definately promoting cordless phones still. The fact is, they're profitable, and promote return business (yearly batteries). I think as long as there's landline phones, they'll be a RadioShack selling them.

      • so you have a cdl ,
        and you go into radio shack stores all over the country to shop for cordless phones???

        i bet they told you in all the radio shack stores that you could avoid expensive cellular phone rates if you bought a cordless phone

        brilliant ...

        i would have never thought of that

        wait till they implement 2005 emissions requirements

        radio shack has a 5 dollar catalytic convertor that bolts onto the stacks of your kenworth

        do you know what a good buddy is....

      • "<I heard that the RSH stores are eliminating cordless phones as part of the latest attempt to again reinvent their retail space. Can anybody on this board confirm or deny this? >

        I wonder about who you heard this from, or your intentions."

        My source was from a piece in the Wall Street Journal dated 6/25/02.

        My intention is to see RSH stock trade in single digits by year end.

      • You are fooling yourself, if you are for real. Get out of this mess....NOW. Then you might have a little cash to hit those liquidation sales we will have to live thru at all of the remaining stores! In your travels havn't you noticed those liq. vultures gathering around the stores. (They are all very near Service merch).

    • I agree, the technicls of the stock do appear to be pointing lower, with possible temporary support levels around 22 and 20. If the market does go lower into september and october, it appears this could easily drop below 20.

      IBD rates the accumulation/distribution with an E( D, E are distribution, A B are accumulation, C is neutural)

      and the up/down volume is a 5.(9 or less is distribution, 1 or higher is accumulation).

    • I would expect to see some support at and around the $22.50 level due to reasonably anticipated options activity at that price point. The $20.00 level also could show some firmness for the same reason. Any close below the current 52 Week Low of $20.10 could be disastrous in the near to mid term. Barring extraordinary news from the retail sector in general, there would seem to be little reason to expect RS to actually manage any meaningful rally. I doubt the stock will be able to consistently achieve $30 for the remainder of the year ar least.