RadioShack Shares Struggling
RadioShack Corporation (NYSE:RSH) shares have managed to increase 2.6% from its 52-week low yesterday, today its trading at $17.30. The analysts are very negative on RadioShack for 2011 and its a leap of faith if you are thinking about buying shares.
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(247WallSt.com | Jon Ogg) RadioShack Corp. (NYSE:RSH) is off to a very rough start in 2011. Its stock has only enjoyed one day of gains since the start of the year. Yesterday brought much carnage to its shares after FBR Capital Markets downgraded the stock, and we have a pair of calls hitting shares all over again on Tuesday after news on Friday that Sam’s Club, of Wal-Mart Stores Inc. (NYSE: NYSE) will take over its kiosks which had been operated by RadioShack. The addition of kiosks run inside Target Corp. (NYSE: TGT) stores was not viewed as enough of an offset.
There is also a concern that Verizon Communications Inc. (NYSE:VZ) getting the iPhone from Apple Inc. (NASDAQ:AAPL) will pose more loss of future business and will create opportunity cost loss when it comes to bringing in new customers to The Shack. As consumers shift between AT&T and Verizon Stores, they are not likely to consider RadioShack their top destination.
Despite a recent report from Deutsche Bank listing “The Shack” as a possible LBO candidate this year for private equity, we have seen earnings estimates lowered by Goldman Sachs and both Moody’s and Fitch have issued debt rating downgrades all this week.
Read more: At 52-Week Lows, Reconsidering RadioShack (RSH, VZ, AAPL, WMT, TGT, BBY) - 24/7 Wall St. http://247wallst.com/2011/01/11/at-52-week-lows-reconsidering-radioshack-rsh-vz-aapl-wmt-tgt-bby/#ixzz1AqPIz8DL