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RadioShack AO Message Board

  • blake71383 blake71383 Jan 31, 2012 1:05 PM Flag

    36mm of 99mm shares traded so far

    we know who is selling--lots of stuck longs that are panicking and rushing to the exits...dumb money mutual funds that thought RSH was good value at $12+ but now decide to clean it off their books so clients don't ask them why they are invested in a stock that just dropped 60%

    but ask yourself this--who is buying??? this is the more relevant question

    would you really be shocked if in a week you woke up, RSH was trading 15% higher in the pre-market because an activist fund filed a 13d announcing a 9% stake and saying that they wanted manageemnt to exlpore strategic opportunities including a possible sale to Best Buy?

    wouldn't shock me at all

    buying at 7 represents a risk/reward proposition of 5% down, 75% up (if a deal was ultimately closed at $12)

    while a deal could take a while, just rumors/speculation of a deal is good for 30% at these levels ($7-9)

    good luck

    i love capitulation trades

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