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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 (15445)	6/3/2010 9:48:18 PM
From: Smiling Bob	Respond to of 19256

Big News In Consumer Electronics Posted: Jun 03, 2010 08:15 AM by Glenn Curtis Despite the difficult economic environment and often intense competition from well financed companies, electronics chain Radio Shack (NYSE:RSH) has been doing very well by its shareholders. A look at the stock's action reveals that the shares have gone from the lowly single digits in the first part of 2009 to more than $20 today. However, some wonder how far the company can ultimately go and whether it might make sense for the company to sell to another entity while the going is good. IN PICTURES: 10 Insurance Tips For Homeowners Why Selling Out Makes Sense Again Radio Shack has come a tremendous way and management deserves some major kudos for guiding it through these extremely tough times. However, over the long run I question its ability to really flourish or stand out given some of the major players that are engaged in the consumer electronics business. After all Best Buy (NYSE:BBY) with its low prices and vast product selection, not to mention its ability to advertise a great deal, is bound to be a major competitor and to give the Radio Shack a difficult time for many years to come. Additionally, the discounters that get lots of foot traffic, sell a large quantity of flat screens and other electronic merchandise of various types. They also have extremely deep pockets. Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) are likely to be another serious obstacle and could steal foot traffic. Recently, some have been speculating that a suitor could step up to the plate. In fact, Blackstone (NYSE:BX), a popular private equity firm, is suspected of being a potential acquirer. Of course, whether or not a deal would materialize is yet to be determined. But my feel is that a firm like Blackstone could come along and offer current investors a nice premium for their shares, and then take the company private. By going private the company could theoretically save a bunch of money. How so? Odds are it wouldn't need a major investor relations effort and it probably wouldn't need to make all the public filings it does. Again my speculation is that a PE firm could come in, trim costs and then maybe resell the organization to another entity down the line. Beyond Blackstone though, it wouldn't be surprising if Best Buy emerged on a white horse and tried to scoop up the company. Keep in mind that the two do have some similar merchandise and it could be a great way for Best Buy to get into some of the niche electronics products and gadgets that can be found in traditional Radio Shack stores. All that said, yours truly has no plans to buy the shares as the result of this recent speculation. If a deal fails to materialize or if something goes wrong, my sense is that the shares could take a sizable hit. Other Ways To Tune Into Consumer Electronics The best way to play the increasing demand for consumer electronics as the domestic economy rebounds is by wading into shares of Wal-Mart. Not only does the 800-pound gorilla of discount retail sell a huge variety of equipment as mentioned above, but it also sells a host of other items that give it a hedge. In other words, if there is a period where few new products come out, some consumer electronics chains could see sluggish sales. But if that were to happen, Wal-Mart could at least theoretically fall back on its array of other merchandise. And again, Wal-Mart has enormous financial resources that could allow it to expand in this area if demand for consumer electronics really takes off. This would make it harder for smaller players to compete. Bottom Line Radio Shack is to be admired. Not only has management guided it tough these tough times, but the share price has done well recently. Now, some think that the company could be an acquisition target. While I think that makes perfect sense, I have no plans to purchase shares on such speculation. In my mind a better long-term bet would be Wal-Mart. The major discounter sells a huge variety of electronics and is hedged in that it sells other merchandise and necessities. (For more stock analysis, take a look at Indulge With Domestic Retailers) Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

To: Smiling Bob who wrote (15445)	6/4/2010 11:45:55 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

RSH - added puts @ 21.7

To: Smiling Bob who wrote (15445)	6/7/2010 10:11:54 AM
From: Smiling Bob	Read Replies (2) \| Respond to of 19256

RSH - added these @ 1.15 21.45 Arrow Up0.13 0.61% 250,391 3 Star Rating Last Trade as of 10:10 AM ET 6/7/10 Trade Add to Watchlist Last Change / % Change Volume S&P Ranking Set Alerts Summary News Charts Options Fundamentals Insiders Earnings Financials SEC Filings RSH Option \| Exchange: OPRA 1.50 0.00 0.00% 0.00 1.15 1.20 0.00 0.00 0 Trade RSH 22.00 Jun 10 P Last Change / % Change Today´s Open Bid Ask Day High Day Low Volume

To: Smiling Bob who wrote (15445)	1/25/2011 12:41:18 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

The Shack’s Cracks Revealed: Radio Shack Slides As Business Softens And CEO Exits Jan. 24 2011 - 7:46 pm \| 0 views \| 0 recommendations \| 0 comments By ERIC SAVITZ An update: In a post two weeks ago, I noted that Radio Shack (RSH) shares had begun to come under pressure on Wall Street concerns that sales at its mobile phone operations could be hurt by the arrival of the Apple (AAPL) iPhone at Verizon Wireless (VZ, VOD), the only one of the four major U.S. wireless carriers with which the retailer does not have a distribution deal. Also pressuring shares at the time were concerns that gadget sales were weaker-than-expected in the Christmas shopping season, as well as the news that the company is about to lose its agreement to operate kiosks in Wal-Mart’s (WMT) Sam’s Club stores. Well, it turns out the troubles are real. This morning, Radio Shack announced that CEO Julian Day will retired as chairman and CEO effective May 16; he’ll be succeeded by CFO Jim Gooch, who becomes president of the company effective immediately, and will take the CEO slot once Day departs. The company named Daniel Feehan, now the presiding director and a board member since 2003, as non-executive chairman. Why is he leaving? Well, maybe it has something to do with this: the company also said that it expects to report Q4 sales of $1.37 billion, up 4% from a year ago, with just 1% growth in comp-store sales. The company expects to report profits of 50-54 cents a share, down from 60 cents a year ago, on somewhat fewer shares outstanding. While sales were almost in line with Street estimates, profits are going to be well short of the Street consensus at 67 cents. Radio Shack noted that gross margin fell “primarily due to the disappointing performance of the company’s T-Mobile business, a higher sales mix of lower margin handsets, and incremental promotional and clearance markdowns associated with seasonal well-through and product transitions in non-wireless platforms.” Sounds like they need a new CEO… RSH today fell $1.99, or 11.3%, to $15.62.