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Strategies & Market Trends : Can you beat 50% per month?

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To: Smiling Bob who wrote (10638)3/14/2007 10:50:56 AM
From: Smiling Bob  Read Replies (1) of 19256
 
S&P Cuts RadioShack to Strong Sell

RadioShack (RSH)

Downgrades to 1 STARS (strong sell) from 2 STARS (sell)

Analyst: Michael Souers

RadioShack shares are up over 50% so far in 2007, and we think downside risk now far outweighs upside potential, with the shares trading at over 23 times our 2007 EPS estimate of $1.10. The company has boosted near-term operational efficiency by closing underperforming stores and controlling costs. However, continuous declines in same-store sales underscore the highly competitive nature of the electronics retail industry, in our view. We expect modest margin improvement in 2007 and 2008 despite slow projected sales, but see further expansion as limited. Our discounted cash-flow-based 12-month target price remains $21.
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