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RadioShack AO Message Board

  • kresl98 kresl98 Feb 19, 2012 9:37 PM Flag

    You just have to laugh

    These comments from the seeking alpha article

    "RadioShack is suffering from a relentless decline in consumer electronics as it emerges from a disastrous third quarter. With that said, investors are overly doubting the success of a turnaround. Management is making progress in cutting unnecessary expenses, particularly for SG&A, to grow margins per square foot. At the same time, the company will benefit from its recent deal with Verizon and the expansion of Target mobile stores."

    Margins per sq that why sales are off 75

    How about the deal with verizon..............was it not sprint another carrier that the CEO said got them in this mess?

    Target mobile.......again wireless is going to be RSH saviour yet the CEO claims it whats killing them.

    wireless wireless wireless.....its all they have other then some taiwan china junk.

    In the end notice the writer says he has no plans to start a position...Thats putting your money where your mouth is !

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    • John, Pay no attention to dave,kres or sh!tshack they are all the same individual and he (she?) is a bashing fool! As usual dave is double counting RSH's debt(imagine that), we will find out tomorrow morning what RSH ended the year with both in cash position and debt, but basically they have about the same ammount of cash on hand as they have debt which is around $650- $700 million! The dividend is not in any jeopardy here as RSH has enough free cash flow even in a terrible Q like Q4 to cover the divvy without ever dipping into the cash reserves!!! RSH is undervalued currently and there will be a nice short covering rally soon, but the big play here (outside of earning over a 6.5% divvy) is the likelyhood of a takeover which will send our shack to $12,$13 or possibly even higher if there is more than one bidder!!!

    • I am laughing, but at your comments.

      1) Margins and sales are not linearly correlated. You can improve margins by reducing expenses (e.g. SG&A) more than reduction in sales. But if you are fixated on sales, it actually went up! Go read again - LOL!

      2)When did wireless fall off the face of the earth? Problem with Sprint means problem with all wireless carriers? Are they all the same company? Is everyone switching back to landlines?

      3) The writer says he is not planning to take positions for 72 hours to show the readers that he has no vested interests in 'pumping'. It's a disclaimer to show his thoughts were independent of his financial well being. And you couldn't tell that?

      Say something new fellas - both you and Dave..

      • 3 Replies to betasplen1
      • Beta, First of all dave and kres are the same person, secondly if an original thought ever entered his mind it would it would definately be a first! Anyone who takes an objective view and knows how to read a balance sheet knows that RSH has a strong balance sheet and is positioned well not only for the economic recovery that has already begun but also is now coupled with Verizon which is the future of the cellular business! The question is wheather or not they will entertain a takeover, I hope (and think) they do because it will maximize shareholder value, however RSH will be back in double digits soon enough on its own anyway! Congrats to all the longs who didn't bail on Friday we will soon be handsomely rewarded with our shares in the shack!!!

      • 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.

      • Beta, what does your gut tell you about tuesday? Do you think the numbers will at least meet expectations?