Shorting Radioshack (RSH)

Assuming we get into a period of increasing risk some of the ma lbo premium may disappear and pound stocks like radio shack. Its probably time to do a little research.
 
The only thing I can say is this store should have been history 10 years ago. But for some reason it still manages to stick around. Most times, this store is empty when you walk in. Other competing outfits offer similar goods with much more diversity.

So the question I have to ask is why is the store still a viable entity or business plan. There has been something going on over the years, not sure if its shrewd financial planning or the whole business plan is a means of cleaning money from other sources.
 
Quote from Spectre2007:

not sure if its shrewd financial planning or the whole business plan is a means of cleaning money from other sources.
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Hey, jamook, waddaya inferrin' there? Best lay off or you might just get the Moe Green special. :cool:
 
If you are shorting stock in this market MS, you are likely in for a very bad experience......the sinking feeling you get in your stomach when you turn on the tv in the morning and find the company you were short is being taken out at a 25% premium and you are now down $12 on the trade.
 
Quote from stock_trad3r:

Um thats why you buy calls in case of a buyout

You set asside 200 a month in case of that
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$200/month? I spend that much on sushi every week you fucking idiot. What are you talking about? :confused: $200 in calls would buy almost nothing as a hedge for any serious short position. :p
 
Traded in my October $30 Puts for January 08 $25s....probably more leverage to be made once this pig starts sinking and I have some reduced visibility now. :D

Also not a bad way to hedge with more time in case their earnings gives this piece of shit stock a little boost.
 
Quote from michaelscott:

I have been nervous about this Radioshack short for a while now.Ive been short since 34 dollars. It has slowly and nervously grinded lower these last few days. Yesterday, it kind of bounced a bit and I was honestly thinking of covering. However, I know the truth about RadioShack. Radioshack is the worst store in all of America. Bank of America hit it dead on. The morale of the staff is low, the quality of goods in the store is simply bad and who goes the shack? Triple Sell boyz.

I sit behind my turret knowing that this was such a good trade. Shorting Radioshack=$$$ 100% down room to go. Well, maybe not 100%, like I want, but surely a few more bits to the 20s.
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you could have said this in any point in history

the store has always sucked

give your name and address to pay cash for a freaking battery?

give me a break

so.....given that the store has sucked for over 30 years - how do you know where the short start point is?
 
Quote from LT701:

you could have said this in any point in history

the store has always sucked

give your name and address to pay cash for a freaking battery?

give me a break

so.....given that the store has sucked for over 30 years - how do you know where the short start point is?
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That's a naive statement. The store hasn't always sucked because they specialize(d) in small parts that are hard to buy elsewhere. Adapaters and harder to find parts have become less necessary as electronics have become cheaper and more streamlined.

With the advent of online stores and Best Buy RSH has fallen off more and more...before cutting laggard stores worked and perhaps the turn-around in wasting money is still good, but probably not and that's why the stock did well in the last 6 months, but not anymore it seems.
 
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