Radioshack stocks should anyone buy them?

Discussion in 'Stock Market Forum' started by Profit5500, Jul 4, 2014.

  1. Profit5500

    Profit5500 Senior Investor

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    I was reading on this article on moneymorning.com and read that Radioshack stocks were worth $76 each in 1999. I am still surprised that I still have a Radioshack store where I live. I found out due to lack of profit over time Radioshack’s stocks are worth $1. I think that is worthless to buy Radioshack shares since they are not profiting.

    Here is the article below

    http://moneymorning.com/2014/06/24/the-next-radioshack-5-stocks-slumping-to-penny-stock-prices/
     
  2. richc3

    richc3 Senior Investor

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    Timing tends to be everything. Whether it's a good buy now is debatable, although perhaps with a bit of a slant on the "no" side. That said, you could always short it if you have a strong opinion they are on the decline. A lot of small electronics retailers are doing well based on the sales they make from cellular products which helps them stay afloat. Also, the fact that their stores are small and you can easily plug them into malls is another good sign.

    Companies like Best Buy don't exactly have that same luxury where they need to employ larger staff, build large stores and alike. They're mostly staying a float from the convenience crowd that wants less hassles with returns, pick it up locally, or need that customer service element. Still, I think we might be moving away from that as the guys like Amazon run the show or Walmart has a reasonable electronics section of its own.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'd stay away personally. I think they're doomed.
     
  4. Allison2021

    Allison2021 Well-Known Member

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    I forgot all about Radioshack. I have not driven past one in years. I will look it up on Google to see if there's one near me. There are three in this part of the county. Based on that alone, I would stay away from the stock. Remember Circuit City?
     
  5. Kate

    Kate Senior Investor

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    Radio Shack still exists?! Wow... I truly thought they were a goner years ago. But even more years ago, by the way, I would have called their stock a great investment (make a note to never take stock buying advice from Kate!) because they seemed to be so strong... well, I guess they were at the time.

    Your post brought back a good memory of my first computer... Tandy. How I hated hand coding everything I wanted to do. :D

    But seriously, if they're down to less than $1, I'd not go anywhere near it now. I may have an interest in penny stocks as a hobby (never as a true investment!) but even I know that penny stock or not, a sinking ship is just that.
     
  6. mark973

    mark973 Well-Known Member

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    Yeah, probably. They don't have anything going for added to the fact that it's hard to even find one wherever you go. I'm actually surprised it's still around.
     
  7. mark973

    mark973 Well-Known Member

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    I'd stay away from Radioshack stocks because they are anything but good. Perhaps if you time things correctly, you might get some profit but really just buy Microsoft stocks, if you really want to get started in stock trading.
     
  8. Jeff455

    Jeff455 Member

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    Radioshack is in desperate need of a good marketing agency who knows how to sell their products because as of right now, they are down and under and are only going further down. In reality though, they need so much more than just a good marketing plan to help them. This company hasn't turned a quarterly profit since the end of 2011 if I'm not mistaken. And from the looks of things, it is not projected to be recovering from that anytime soon. The fact that the store is closing 20 percent of its stores should be a clear indication as to whether or not to buy this stock.

    There is a chance that some short-covering could possibly lift the stock before the next leg down. Honestly though, it wouldn't do much good as they are beyond saving in my opinion. Even their past Super Bowl ad failed to deliver the changes they were needing and hoping for.
     
  9. May102014

    May102014 Well-Known Member

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    I concur my friend. RadioShack's brand is not where it once was in 1999. The competition from other companies have swiftly put a dent in RadioShack's stocks over the past 6 years if you want to be realistic. They have to still trade on the market to generate some type of revenue investment for their company. However, I can't see this company surviving within the next 5 years unless a massive overhaul in image, product, and marketing production take place.
     
  10. IrishLad

    IrishLad Member

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    I also don't think investing in Radioshack would be a good idea. Their popularity has only been going down and down since the turn of the century. With all of the cheap shops on the internet to buy specialist supplies and the big chain stores like bestbuy there really is no place for Radioshack. Unless they go through a severe brand makeover they will be finished soon.
     

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