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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (10860)	5/10/2007 12:47:03 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

Out of the Gate: RadioShack Falls Thursday May 10, 10:28 am ET RadioShack Declines in Early Trading on Credit Suisse Downgrade Citing High Price of Stock NEW YORK (AP) -- Shares of RadioShack Corp. dropped in early trading Thursday after a Credit Suisse analyst cut his rating on the stock, saying he likes the electronics retailer but is concerned the stock price reflects very high expectations. Analyst Gary Balter cut his rating to "Neutral" from "Outperform" and kept a $30 target price. Shares dropped as low as $29.71 after the opening bell. RadioShack shares are up 73 percent in the past year, and have added 18 percent since April 30, when the Fort Worth, Texas, company reported first-quarter results that beat Wall Street forecasts. Balter said the latest spike -- shares added 9 percent this week -- came on takeover speculation, but he does not believe an offer is looming. "While RadioShack clearly has an important franchise and that has value on its own, we believe that the stock reflects much of the upside case," he wrote. "In our view, RadioShack still represents the earlier stage turnaround with significant runway to go." It is not likely near-term performance will be good enough to support the higher stock price, since it bakes in very high expectations, added Balter, though he likes the efforts RadioShack is making to drive margins. The stock was down $1.29, or 4 percent, to $31.34 in morning trading.