RadioShack Corp (NYSE:RSH)
CAPS Rating:
The Company primarily engages in the retail sale of consumer electronics goods and services through its RadioShack store chain and non-RadioShack branded kiosk operations.
The Company primarily engages in the retail sale of consumer electronics goods and services through its RadioShack store chain and non-RadioShack branded kiosk operations.
Recs
The price tag for the assets is cheaper than what those assets are worth.
If the dividend is only 0.125, that still amounts to a 4+% yield.
Combine that with the high short interest, and recent insider buying increases the odds this will rise. I'm looking for it to hit $3.65+/sh in a fairly short amount of time.
Lets see.
There is no dividend anymore.
I understand the div was suspended, but was going based off the long-term record of payments.
While a suspension raises a red flag, I think the negativity is overdone.
By my estimate, the company is worth at least at $104M, and it was trading for $92M when I bought it.
The two main concerns were the legal proceedings and inventory valuation. The lawsuit would be only $21M if I remember correctly; and inventory valuation actual loss has only been $11M.
So with these concerns taken care of, there's a good chance RSH is undervalued. Retailers might not be sexy like the online guys, but they still sell stuff people want. The assets can still get bought out.
What will actually happen is anyone's guess, and that's what makes it fun.