Usman Shah
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Should RadioShack Sell Out?

RadioShack Corp. (NYSE:RSH) used a trick that hasn't been used since 2010 on Tuesday. They posted an increase in same-store sales, briefly raising the dying stock before succumbing to gravity once again and selling off. Despite this one thing the company has been doing horrible, they disclosed a larger than expected quarterly loss, sales are going downhill, customers are like ghost and lastly CFO jumped ships. "It's just a broken business model and there are better competitors, better options for consumers," says analyst Michael Pachter of Wedbush Securities. "They can't overcome that decline in traffic and they're not cutting costs fast enough and they're running out of cash," Pachter says. "I'd say they're out of business, literally, in about a year-and-a-half."


I agree with Pachter, I went to Radio Shack the last weekend, the prices there are higher then the average price on market. With all the competition out there Radio Shack needs to have lower prices to attract more customers. RadioShack has 5,800 stores worldwide and 1,500 wireless phone centers located in the U.S. I think its time for RadioShack to cash out and sell the assets to a bigger company, they can still get out of this with a good profit. The longer they wait the lower the stock is going to drop. RadioShack is currently trading at $2.75 a share just $.85 cents above its 52 week lowest.