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To: Smiling Bob who wrote (186444)	4/23/2009 12:29:29 PM
From: Perspective	Respond to of 306849

RSH - one to keep on the radar as the TV analog to digital TV conversion blip runs out: blogs.barrons.com April 23, 2009, 11:54 am RadioShack’s Rally May Prove Short-Lived Posted by Bob O'Brien RadioShack (RSH) has had, by a wide measure, its best trading day this year. The response to first-quarter earnings has propelled the stock 12% higher, to nearly $13 a share, double where it traded at the lows last month, and back to what the stock commanded at the start of the year. The gains have been leveraged off better-than-expected sales and profits at the electronics retailer, as sales in the period rose 5.6% to reach $1 billion, ahead of forecasts of $937 million. Start of a recovery for the downtrodden electronics retailer? Maybe for another quarter, but - likely - no more. Sales gains have been juiced by a short-duration event. And there’s a point on the horizon where investors can expect to see the sales strength fall off the proverbial table. RadioShack sold some $70 million in digital television converter electronics, a figure that represented virtually the whole of the outperformance of the sales total. The converters are needed by television viewers who receive over-the-air analog signals, but need a converter box when broadcasters abandon analog and switch to all-digital transmission systems. That initially had been scheduled to take place in February, but the government pushed the transition date back to June 12, so RadioShack has gotten an extra quarter of sales of the products to show for it. Naturally, there could be a spike in sales just after the June 12 transition, as television viewers who didn’t adopt a digital format scurry to catch up. But the sales won’t last much beyond the June 12 transition date. And, chances are, RadioShack’s ’’secret sauce” sales spike ends then, as well. `BC