eHam

eHam Forums => Misc => Topic started by: K0OD on June 20, 2014, 01:42:50 PM



Title: Radio Shack Closes Under $1 For First Time
Post by: K0OD on June 20, 2014, 01:42:50 PM
"RadioShack's stock is trading below $1 per share for the first time in its history — and has the investment world wondering if it will eventually be delisted.

Shares of RadioShack Corp. fell 9 cents, or 9 percent, to 94 cents in Friday afternoon trading after falling as low as 91 cents per share earlier in the day. The New York Stock Exchange could delist the stock if it closes below $1 per share for 30 consecutive trading days.

The stock is well below its all-time high of $79.50 set in December 1999. Since then, RadioShack has had trouble finding its place in the evolving retail and technology landscape."
(http://chart.finance.yahoo.com/w?s=RSH&lang=en-US&region=US)


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KD0REQ on June 20, 2014, 02:08:40 PM
the chart says to me some big holders cashed and ran...


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K0OD on June 20, 2014, 02:20:46 PM
WSJ Blog today:
"Investors appear to be most concerned about RadioShack’s cash position.  As of May 3, the company had $61 million in the bank, down from $180 million at the end of 2013. The company said earlier this month that it had enough cash to last at least 12 months, but that’s contingent on an immediate improvement in sales and margins, no easy feat."



Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 20, 2014, 03:29:06 PM
Hello.

Unless Radio Shack sells the ultimate toy, it is going to have to be bigger than Elmo, Furby and Simon combined.
AND, they have the ultimate widget nobody else has.
AND, they somehow train each and every member of the sales staff to sell, upsell, and upsell on top of that.
Radio Shack is screwed!


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: W4KVW on June 21, 2014, 10:04:47 AM
Useless store these days unless you want a cell phone or remote controlled toy & I have ZERO use for either! They can shut them all & I will not miss them.

Clayton
W4KVW


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K7KBN on June 22, 2014, 10:07:58 AM
What do Radio Shack and young codfish have in common?
They're both scrod.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KD0REQ on June 22, 2014, 05:00:07 PM
heh, KBN.  as a born judge of fishy (Aquarius with Pisces rising, which means I'm all wet and everything I do is a little fishy) I do believe it's time to cut bait, here.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K7KBN on June 22, 2014, 06:21:52 PM
I'm a PIsces myself (born on PI day: 3/14).

Don't get too many chances to use the word "scrod".  First time I heard of it was in a story about a guy who'd just arrived in Boston and was eager to try this dish.  He hopped into a cab and asked the driver to take him to a place where he could get scrod.

The driver replied, "I been driving a cab for 20 years and I probably heard that same sentence a million times, but this is the first time anybody has used the pluperfect subjunctive!"


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: AF5CC on June 22, 2014, 09:30:49 PM
I will miss them if they do go under. I don't shop there a lot anymore, but it is nice to be able to get various electronic parts on a moment's notice, without having to wait for them to arrive in the mail, and pay some (usually) outrageous shipping charges-like $8 or so for a single part that could be thrown in an envelop and mailed for $1.50

John AF5CC


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K1CJS on June 23, 2014, 07:50:11 AM
RSH - Jun 23 10:49 AM ET -- 0.82


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KD0REQ on June 23, 2014, 08:56:37 AM
woohoo!  investment opportunity!  get all your money out of CDO^3s and Russian banks and Petters Worldwide and buy RS stock!

myself, I'd rather invest in a sub sandwich.  lasts longer and fulfils a basic need.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: N8LTD on June 23, 2014, 09:30:46 AM
These days it's hard to find a pl-259 in stock at a RS within 10 miles of my house. And I live in the big city of Houston.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 23, 2014, 10:17:10 AM
These days it's hard to find a pl-259 in stock at a RS within 10 miles of my house. And I live in the big city of Houston.

Hello.

Electronics Parts Outlet!
http://www.epohouston.com/
You will see me there and at Tanners in Dallas (Carrollton).
I am the guy who drives a semi truck tractor and parks on the side.
We are the guys who came in and put together 800 crystal radio kits for a summer project.
By put together I mean getting parts together, drilling holes and sanding boards and section of plastic pipe, putting all the parts and instructions in plastic bags.
Times 800!


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: N8LTD on June 23, 2014, 05:28:43 PM
These days it's hard to find a pl-259 in stock at a RS within 10 miles of my house. And I live in the big city of Houston.

Hello.

Electronics Parts Outlet!
http://www.epohouston.com/

Times 800!

I didn't know EPO would have something like pl-259's. I just ordered 20 of them from Gigaparts Friday. And ordered the Extra class book 'cause I got tired of the local radio shop telling me "no we don't have it" every week when I would call. These days it's getting hard to find anything at local stores. And I'm getting to where i don't wanna get out in the heat and humidity and traffic and put miles on my car. So I order almost everything online now.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K0OD on June 23, 2014, 06:26:04 PM
Divide RSH's market cap by the number of stores (about 4,000) and you get about $20,000 per store. So stop beefing about their business practices Now just about any ham can afford his own private Radio Shack. Ditch the phones; fill YOUR store with components! That day is probably approaching... fast.

RSH closed at 82 cents a share today. I'd imagine they're getting cut off by vendors. They'll have to pay upfront for advertising. Customers are learning about the problems... who will buy those high margin maintenance contracts now?  

Death Spiral. BK probably in days.  


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KD0REQ on June 23, 2014, 06:43:06 PM
last time they poked their heads out of the bunker, they had around $50 million to spend.  beginning of the year, it was something like $280 million. that's 3 to 5 months burn.  closing those 200 stores announced will impact that.  just saying...


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K0OD on June 23, 2014, 08:03:50 PM
"that's 3 to 5 months burn"

They had $61 million. Yes, probably about $50 million now. Revenues are plummeting. Shelves are emptying. Old projections weren't based on them paying for merchandise upfront. It's normal to pay 30 days after delivery. Or legions of lawyers or BK consultants. Did I mention lawyers?

Unique about Radio Shack is the utter absence of competitors standing by to grab all or part of their stores even at a bargain price. I wonder too what their collapse would do to their suppliers... for example, the firms overseas who paste two resistors on those cards. Problems must be rippling thru Shack's vertical integration.

It's not at all like closing a large chain of mall clothing shops or shoe stores. There you change the sign over the door and a new owner takes over a week later.

Filing BK will get RSH cash and stave off litigation: For those new lenders it will be low risk Debtor in Possession money to keep the lights on until Christmas, and during the monumental task of shutting down 4,000 stores. 


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 23, 2014, 09:36:04 PM
Hello.

This is, if they have any good employees left.
Just in San Antonio, 2 employees just quit to go to Six Flags, one went to Auto Zone.
Everyone is scrambling!


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K1CJS on June 24, 2014, 06:43:13 AM
Somebody sneezed.  Stock quote today is 83 cents per share--up 1 cent!


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: WA2ISE on June 24, 2014, 07:13:39 AM
...

Death Spiral. BK probably in days.  

What, Burger King too?   :o...  Oh wait,  you mean bankruptcy    ;D

About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 24, 2014, 07:47:59 AM
Hello.

The stores on Broadway in San Antonio are closed, both of them.
Turns out that there was a delay on getting pay checks out, and now this?
Some employees are just not showing up!


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KD0REQ on June 25, 2014, 12:43:21 PM
aaahhhh, that's telling.  the one thing a business absolutely, positively has to do is pay the help.  Ol' San Antoine is close enough to the headquarters that somebody could drive out and set things aright the same day.  even assuming the store managers goofed or left.

assuming anybody at HQ is minding the business... a concept not subscribed to generally by posters here...


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K0OD on June 25, 2014, 08:14:33 PM
It's very unlikely employees aren't being paid or that they would walk out due to that threat. In liquidation, back salaries are very high priority. Almost up there with lawyer pay.  :)

REQ: note that debtor in possession financing is senior debt incurred AFTER bankruptcy is initiated.

Reading Tandy/Radio Shack's long history, one wonders whether there's anything they haven't tried to right the ship, often several times. Remember when they also owned Color Tile and the leather stores? There was Incredible Universe and Computer City (acquired by Fry's) and a cell phone chain. Other concepts have been tried by Tandy overseas.

For those who want to speculate in a different way, RSH has bonds that mature in 5 years. They sell for about 40% of par value with a current yield of about 20%.

I think S&P rates RSH bonds at CCCrap. 



Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 26, 2014, 12:25:16 AM
Hello.

I talked to the lady who took over the one store.
Radio Shack has not issued commission checks for months!
This has nothing to do with a bankruptcy, it is just that radio shack has not issued any Spiff checks for months.
Unlike the regular pay checks, bonus and Spiff checks come from the district office.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: K1CJS on June 26, 2014, 07:31:11 AM
...About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...

It happened in my general area too--twice.  Turns out that RS had moved from inside a mall on both occasions to an outdoor shopping plaza nearby.  Malls are a dying thing even since the internet, and the rents in them have gone high--higher than RS wanted to pay.


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: KA5PIU on June 29, 2014, 09:57:52 AM
Hello.

Radio Shack moved from a low rent owned store to a high rent store a few years ago.
Then they started to move into strip centers, lower rent, about the time they started to sell car stereos and phones.
They still sell phones.
But, I can sell phones from a tent in the parking lot, or at a flea market.
I get set up, do my thing at a flea market, sell CB and CB accessories.
Jail break phones, flash to a new carrier, and run free ham radio classes in Spanish.
I breath fire and dance with machetes and in exchange I pay no rent.
In short, I am undercutting Radio Shack, and have one market they had and one market they have.
Since I do not work under contract to any cellular carrier, I can do almost anything, and do!
I took my lessons from "Madman" Muntz, a true artist at sales.
Muntz would take parts out of TV,s to make new sets cheaper.
I take parts out of used TV,s to make cheaper radios.
https://en.wikipedia.org/wiki/Madman_Muntz


Title: RE: Radio Shack Closes Under $1 For First Time
Post by: W9FIB on June 29, 2014, 03:22:14 PM
...About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...

It happened in my general area too--twice.  Turns out that RS had moved from inside a mall on both occasions to an outdoor shopping plaza nearby.  Malls are a dying thing even since the internet, and the rents in them have gone high--higher than RS wanted to pay.

Sometimes we do agree on some things.  ;)

Similar here, always looking for cheaper places when the lease is up.