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RadioShack AO Message Board

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  • kresl98 kresl98 Feb 20, 2012 11:19 AM Flag

    You just have to laugh

    I know in this last hour you are a bit desperate but come on. Lets be honest here. This is a buisness on the decline. Have you been hiding in a cave? From about this point in Circuit Citys buisness they were closed 8 months later.

    The problem with Sprint is YES.......all carriers. RSH is not a wirless company. They are a reseller of the product. The margin they take is next to nothing. The only way to offset the loss is through volume. Guess you dont pay much attention to others earnings? Did you watch VZ report how much they lost on iphones? Get ups to speed here RSH makes nothing. They are the last to the wirless party and are just being taken down by it. If you think wireless has been so good to them then explain away why a 75% decline in the most profitable time of the year. Margins/sales/wireless.........all mixed.
    You must not understand the wirless buisness very well. You do understand they lose money on the phones dont you? Every single phone? The wireless carriers make this loss up on the monthly charges. Thats why they love to have some second tier reseller such as Best Buy/Shack sell them for them..waste all the time it takes to get it going and pay them a pittance......Well you heard how unhappy the CEO was with it.

    On Tuesday look for horrible earnings....That we know but the guidance will be horrific as well IMO. The CEO will reset the entire year for guidance and if this happen RSH will open somewhere in the 6 range.........If its really bad 5 is not out of the question.

    You longs or swing should not have been so greedy. You got a gift Friday......The smart ones I am sure took it and got out. Those who are in now sit on an enourmous amount of risk. My cash is made. It will be fun to sit and watch this shake out....shake being the key word.

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    • If you are trying to compare the sprint wireless network with Verizon, you should do a little more research. 4G LTE is the future of wireless, and sprint's network is not capable of 4G LTE service. Remember back when VCR's were the main form of recording? There were two technologies, VHS and BETA. VHS won out, and BETA disappeared. Well, in the battle between Sprint's WIMAX and Verizon's 4G LTE, Sprint will be the BETA of the battle. So a move from Sprint to Verizon is extremely bullish.

      • 2 Replies to johnmr12
      • Jonny,

        You are right......wirless is fantastic...all you say fantastic........BUT............It has zero to do with RSH

        Not sure what your rant about Sprint or VZ is so I will try this again. It doesnt matter. RSH is not wireless carrier. They have no product. They are a reseller of products for these carriers.....nothing more. ALL WIRELESS CARRIERS LOSE MONEY ON THE PHONES.......Do you get this? They make the money on the airtime and offset the loss. RSH does not do this. They get tops 5-10 bucks per phone and when all is said and done it ended up to be a loss in the Sprint case. Go look at ATT/VZ/S earnings comments on the phones. They lose money hand over fist on the iphones and others. They are super happy to have the shack write these contracts for them. Its unclear what you do not understand about this buisness. the last VZ confrence call the CEO stated............HAVING A 3RD PARTY WRITE CONTRACTS AND OFFER PHONES HELPS vz BOTTOM LINE,

        WHY? Because this buisness is a loss. RSH hopes it will sell chargers and phone hook ups to offset the loss. I dont know about you but I never buy that extra garbage when I get my phone. It obvious no one did at the shack either. probably had better done alot more research before you bought into a company you didnt understand.