Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: grahamcracker who wrote (876)	4/30/2012 9:00:38 PM
From: batman10023	Read Replies (3) \| Respond to of 1876

i went to a RSH this past week. only one other person in the store. do you have a break-down of their sales and profitability of various products? i want to like the stock but here is what i don't get 1) phones - i think this is their cash cow but i don't have a good handle on the economics for vz/att - what's to stop them from continuing their practice of offering the phones directly. 2) amazon's prime - i think this is a big threat. many things that RSH sells i can get for significantly cheaper on amazon and get it the next day.

To: grahamcracker who wrote (876)	4/30/2012 10:16:38 PM
From: Covenant	Read Replies (1) \| Respond to of 1876

RadioShack has adequate liquidity, with $566 million in cash and cash equivalents and an unused $450 million credit facility as of March 31, 2012. The credit facility expires on Jan. 4, 2016. Availability on the facility would be reduced by 12.5% ($56.3 million) if the fixed charge coverage ratio drops below 1x, though this would not have a material impact on RadioShack's liquidity. Fitch notes that the calculation of fixed charge coverage has been amended to exclude the $49.6 million dividend payment made on Dec. 15, 2011, providing some near-term relief to this covenant. This is the major threat to the dividend.