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Why RadioShack is Fooling All Fools In Their Recent "Stock" Success

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November 09, 2009 – Comments (2) | RELATED TICKERS: RSH , HD , BBY

Ok, a rare treat, 2 blog posts in 1 day.  Well too much on my mind and in particular I know a lot about this next stock to be discussed to have some good insider info on.  That stock is RadioShack (RSH).

As you see I am currently losing on this pick (Thumbs Down).  It's recent run to $20 might seem like success to some but to me it is just the start of the fall of RadioShack.  I was once put through their hiring session several summers ago.  I didn't get hired.  They were looking for "specific people", people that knew the inside and out of anything electronic.  They were offerring very good pay for these jobs - of which a lot was from commission.  But hey!  Pay for performance never hurt nobody right?

Well apparently RadioShack is following the footsteps of Circuit City and Home Depot of the early 2000's.  You remember what Circuit City did?  They forced out their higher paying employees for lower paying employees.  Home Depot did similar.  Ever remember walking into a Home Depot between 2000 and 2007 when a guy named Bob Nardelli ran the show?  You ask for something simple like where the paint section is and you get a blank stare back from a person in the Orange Uniform.  Similar thing happened to Circuit City.  And the SAME thing is happening with RadioShack.

In addition to this trend here are others as to why RadioShack long-term is a strong SELL:

-Internet shopping allows for more consumer power over prices

-People looking for big $$$ products would rather look at a Best Buy or Wal-Mart or Target

-RadioShack is losing everything that made it special and unique

DISCUSS

2 Comments – Post Your Own

#1) On November 09, 2009 at 5:39 PM, davejh23 (< 20) wrote:

I agree.  Without dramatic changes, I wouldn't bet on RadioShack being around at all 10 years from now.

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#2) On November 09, 2009 at 6:10 PM, mikecart1 (99.23) wrote:

davejh23,

Agree.  My last shopping experience with RadioShack had me look into 3 different ones for a battery.  By the time I went to a RadioShack that knew what the battery was, they were able to find it right off the store floor.  The other 2 numbnuts apparently got their job as a gift.

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