Analyst love -- for RadioShack? - Top Stocks Blog - MSN Money
 
Search Top Stocks:

Analyst love -- for RadioShack?

Posted Jul 27 2009, 12:27 PM by Kim Peterson
Rating:

Public domain releaseSay the word RadioShack (RSH) and you'll usually get a snort from Wall Street. Of the 19 analysts that cover the stock, only one had a rating stronger than hold, Barron's reports.

But last week, two of them changed their mind. Analysts from FBR and RBC Capital Markets upgraded their ratings from hold to outperform, Barron's reports. RadioShack shares jumped to $16 from the $14 range in response. Monday, however, the shares dropped back some 6%.

Why were analysts suddenly bullish on the downtrodden electronics retailer? They saw some good news in RadioShack's wireless business, buoyed by a new sales deal with T-Mobile USA.

Still, there is concern about overall sales. Many customers turned to RadioShack for help with the digital TV transition, heading there to buy television converters and antennas that could pick up a digital signal. But those sales are slowing down, now that households have adjusted to the switch.

Will RadioShack be able to replace that dwindling source of revenue? A handful of analysts seem to think so. The rest -- not so much.

Related reading:

Consumers can't stop buying electronics

Economy throws wrench into digital TV switch

Will your TV suddenly go black?

Comments

 

A key reason that the Analysts also got more postiive is the announcement by Lance Armstrong that Radio Shack will be his team sponsor and main charity partner for LiveStrong.  That really raises thier profile and also has the potetntial of getting their name into Euro markets.

At least they stopped asking for my address and zip code when I make a purchase. It was getting hard to make stuff up, even if I paid cash!

It's Called PUMP AND DUMP by a few that have friends that want to get rid of RS.,

Or make news for a day or two and then blow their horn,saying see I told you so?

I consider that about 3-5% of what analyst' tout as worth-while listening; Therefore if you take 100 of the experts and blow out the chaff, you might be able to get a concensus that is meaningful...only MY OPINION, but it works for us.

The majority of these pundits come to the table way too late, to be of any benefit to the common investor; And the back paddling can be ferocious sometimes, to just save face....But then again, their are a few(damn few ) that I have great respect for.

I do not understand why people invest in companies that can cut overhead but cannot increase sales.It is no longer the Shack that made "the shack".They are replacing knowledgeable senior sales people and managers with lower paid people that don't even know what the electronic parts do. They have basically become a wireless phone distributor. This cannot last for long, you can only cut cost so much. When your salespeople know less than the walmart guy why shop there? They charge more for less.

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):