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RadioShack AO Message Board

  • sean1015571 sean1015571 Feb 5, 2011 11:03 AM Flag

    An evaluation of RSH

    The primary concern of the investor is that of money and not of day-to-day operations.

    The results of operations will be reflected in the income account eventually. As a result, if the investor concerns himself with a long enough time horizon then he will allow himself to evaluate the passage of time as a function dollars.
    ---
    I would state that RSH is a stable retailer - and has proven such staying power. RSH has not shown any inclination towards growing power. Consequently, I do not evaluate RSH as a growth company nor convert any untapped potential into present-day (positive or negative) value.

    ---
    The below is a quick method for determining the investment potential of RSH. For clarification, potential is to be defined by the investor as a comparable investment opportunity for inclusion within a portfolio as opposed to the potential financial trajectory of the RSH company itself.

    This method is based on a non-complex evaluation of the financials. So the symbols of this analysis are nominal dollars and not the opinion of various leading authorities. I choose only dollar values for two reasons:

    1) Stability of numbers over the past half decade.
    2) This base is a less biased starting point upon which the investor can develop an informed and stable opinion.

    ---
    RSH has roughly shown over the last 5 years:

    a) Stability of after-tax income approximating $200M annually.
    b) An annual depreciation amount of over $100M
    c) Annual capital expenditures that reflect investor costs of approximately $80M.
    d) Fixed assets carried on the balance sheet of approximately $300M.
    e) 'Free' Cash (as itemized on the balance sheet) of say $500M presently.

    First:
    Depreciation of $100M on assets of $300M yields a far too high depreciation rate. Consequently, one must recognize that the fixed assets reflect only carrying value on the balance sheet.
    It would make more sense to recognize that $80M of capital expenditures probably supports a total asset value of close to $1 billion. Such an idea would cede a far more reasonable depreciation rate of roughly 8%.

    It is important to appreciate that capital expenditures are costs paid by the investor and not the business.

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    • Okay,

      I gotta get another hobby, I realize that. This torments me far more than you.

      I would think myself crazy, but historical markers are the objective standards which deny that conclusion.

      As a result of using historical markers as a sign of intelligence, then to a larger extent than others, I have chosen my life to be one of fate. So do not consider me wise or lucky. I draw the opposite conclusion.
      ---
      Normally, the intelligence would be considered specificity. And the emotions sensitivity.

      As a result, emotions can lead you anywhere but no where specific.

      And intelligence maintains itself in a specific spot unless aided by the sensitivity of emotions.

      For me, my life is opposite. And I think it is better that way.

      As a result of being opposite, I need to drape myself in laziness or stupidity.

      Nonetheless, I wished to take a very broad look to see if there are others who take similar issue. And this was my search - only when I started I did not know the true purpose of this quest.

      And it seems there are too few.

      My curse is not that I am misunderstood. It is that I think you misunderstand.

      There has gotta be a better way to get this stuff across. I put all these messages here because investors measure themselves by results.

      Soooo, back to Radio Shack, Mr.Wilkinson.

    • I hope that makes sense to you now:

      Those here (on earth), who do the will of my Father, they are my brothers and my mother.
      ---
      Mother is simply wisdom.

      You are the child (orphan) who will inherit that which belongs to the Father, if you do His will.

      His will tells you to give your goodwill in order for others to become equal to you (i.e. equality).

      Equal and one.

      It is not more difficult than that.

      For real.

    • And for those who doubt, look at the family members I am pointing out!

      But you have to earn your way into this family.

      In a sense, your birth into this family, is strictly up to you.

      It is true:
      Deserve what you want.

    • And then remember to whom Warren Buffett gives credit.

      They could not have achieved what they did, without having figured this stuff out.

      Those two built Berkshire on goodwill.

    • I suppose Warren Buffett said it long ago:

      When it is raining 'wealth', do not bring a thimble to the party.

      [not an exact quote]
      ---
      And you see, what he was saying is that the 'thimble' (or bucket, etc.) is the vessel.

      And of course, as the wise have always known, you have to start with an empty vessel. And a vessel big enough to catch what is raining down.

    • Am I alone?

      Nope.

      I am not the only one who has figured this stuff out.

      I figure the others were born decades or centuries too early. Some figured this out too late in life, some were too 'trapped' in their lives for others to believe them, and there are probably many other reasons as well.

      I am just a guy who was able to figure it out 'by himself', communicate it to others, communicate it to the broadest audience, not affiliated with any group or committed to a philosophical stance, communicate it somewhat quickly, and is young enough to have nothing to lose.

      Not to mention I am fairly relentless and offer many different ways to see the same thing (i.e. truth... different rays of light coming from the same source).

      But the bottom line is that I am not alone.

      That would be impossible.

    • Oh and by giving goodwill is the sign of movement.

      And the reaction of getting goodwill is the sign of repose.

      The sign of movement and repose.

      And goodwill is your truth to make another equal to you.

      And truth is light.

      And that is how to become a child of light.

      ---
      You know it kind of does make sense of why 'they' did Jesus in.

      The guy just could not be quiet. I mean, for real, why else did they try to destroy him (i.e. he kept speaking the truth and could not stop)?

      What is the world going to do with a guy like that?

    • I suppose the rest is up to you.

      You have always known that you have to do it yourself.

      ---
      I am not saying that I will stop writing messages - that is an almost impossible task for me to achieve. I clearly cannot shut up. And that is a truth as well.

      As a result, for those who enter into through this door, we will act and react for each other's benefit. Anyways, that is the only way to get in.

    • I hope you see that through logic and the use of historical markers, these messages are true.

      And by giving them away, I have shown goodwill in my desire to create equality.

      An equality of goodwill amongst us ALL in order to be One.

    • And what you get is 'merely' the reaction from your action of giving goodwill.

      ---
      i.e.
      Whoever has something in his hand, something more will be given to him.

      And whoever has nothing, even the little he has will be taken from him.

      ---
      And those words above are not mine, of course.

      And that is why I have been saying over and over again, use your hands for giving.

      And you will become forgiving.

      And that is what you will receive: forgiveness.

      And what you should give is your goodwill.

      ---
      For real.

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