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larryswinford's review
Investment Sector: Equities Submitted by Larryswinford 
9 months ago Add Tag |
Radio Shack (RSH) has been on a long slide until recently. In the last 52-weeks, the price has been at a high of $35 (6/18/07) and a low of $13.31 (1/22/08). It recently closed at $16.34.
Why would anyone be interested in Radio Shack? For one thing, it has a $1.61 earnings per share, a price to earnings ratio therefore of about 10. The dividend, $0.25 may not be what one would expect from banks and utilities, but for retail sales the 1.5 percent yield it is a fair bit better than average.
You won’t find a great cheering section for Radio Shack as a stock. While it is part of the S&P 500, the three stars rating is only at "hold". Reuters calls it "underperform". Something that might be worth consideration, however, is akin to the "dogs of the Dow" phenomenon. At times, the companies that seem to be doing worse, in relation to others, has the potential for really good price appreciation. After a steady slide from poor earnings and a management shake up, Radio Shack just might be turning a corner.
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