I went into Radio Shack today and the sales representive mentioned sales have been very good with a strong customer base. He also mentioned " Radio Shack is still hanging in there but we have been extremely busy". I asked about Joe and there was no real comment.
On a side note, I overheard a discussion regarding different wireless plans and which had the highest price margin. They compared phone plans to Toyota and Maserati, saying one carrier was the Maseratti of phones. This tells me they know their product and how to make the most out of it. Back in the day when I was in stereo sales knowing about product and margins was key.
The negative from my experience was the lack of a close. When approaching a customer one should have a series of steps find what they need then close the deal. I would like to see strong training in this area. They also need more stero equipment (receivers, speakers and etc) and computers. There can be high profit in speakers.
I would also like to see Radio Shack go back to the catalog, my suggestion a more modernized version like Crutchfield. I always enjoy when my catalog comes in the mail and finding tome to browse during the weekend.
Sentiment: Strong Buy
Funny thing about radio shack stores is the busiest are not the most profitable with the mid sized being the best for profit.
If you reel back through some of the past CC's you'll hear a brief comment of "we even closed some large mall stores"....
You'll find those "flag ship stores" are just a politicle waste,,,,, hint, hint CEO joe.
Just to be clear:
The dates of the posts were written are a day apart. The Radio Shack visit was not made up. I use to work at Radio Shack, while going to school, from 1979-1980 and worked for many stereo shops (CMC stereo, Pacific Stereo, Federated and Video concepts). I do admit that my expertise is no longer with Stereo sales but some knowledge is never lost.
Personally my comments were both positive and negative and I tried to be unbiased.
As far as the pumping goes, New blood is noticing an opportunity. If one looks at the quality of investors purchasing, holding along with news releases one can see a positive and upbeat trend.
I would think shorts should hold for a period of time (at least 1st quarter of next year) to regain any losses that accured over time, but that will not happen anytime soon. However, a sprinter can be made into a long distance runner but a long distance runner cannot be a sprinter. This may be why some longs are usually bad shorts.. With that said a short can possibly make money by lengthening their hold time investment for 1/2 a year.