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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (46776)2/28/2012 7:26:16 PM
From: Brian Sullivan  Read Replies (1) | Respond to of 78687
 
My hope is that Amazon buys out Radio shack and rebrands the stores as "Amazon Outlet Stores" where they could sell Kindles and various Amazon Essential items and provide a customer pickup option such as Best Buy already has at its stores.

Since it appears that Amazon is throwing in the towel on not collecting/charging customers state sales taxes, so now they can be open to having their own line of retail stores.

Since RSH trades at a very low valuation (below book value) it doesn't cost them much and they can even afford to over pay using their over priced AMZN stock instead of cash.



To: Spekulatius who wrote (46776)2/29/2012 12:53:44 PM
From: Dennis 3  Respond to of 78687
 
I agree Motley Fools valuation is extremely positive. Buyouts are usually some multiple of EBITDA( I like pessimistic range of 5-8X).

I like RSH at these levels my only concern is there no clear catalyst. A buyout is highly optimistic thinking.