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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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To: Robert O who wrote (835)5/2/2012 12:14:45 PM
From: The Ox  Read Replies (1) of 8288
 
RSH has numerous problems but their main one right now is that they put a lot into being a "Sprint" store a few years back and that hasn't panned out the way they thought. Similarly, they are an "old" brand and probably should consider changing their name, as Radio doesn't appeal to the younger generation who live in the internet world. Add in that their real estate investments are down substantially, like everyone else. The shorts have been all over this one and they've been right all the way. 2 years ago my folks had a ton of money in them and I told them to take it off the table in the low 20s. I can't tell you how happy they were that I was paying attention because I'm sure that they would still have all of it, if I hadn't chipped in my opinion.

Probably safe to say that they're not in trouble of going bankrupt but the are looking at sales growth in the 2% range or so at best right now. Earnings estimates have been slashed to nearly 1/3 of what was thought they might be and, likewise, next year's have been cut at least in half. The last quarter of each year is supposed to be their best and they performed very poorly during the Christmas season. The 1st qtr of this year stunk, as they lost money when the analysts were expecting a gain.

I will continue to watch them but not sure they are worth a long term investment at this time. Certainly the price is more in line with their potential and this may be the place to start considering them.
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