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Author Topic: Radio Shack Corp "Suspends" Dividend. Stock Crashes  (Read 9937 times)
K0OD
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« on: July 27, 2012, 01:11:47 PM »

"RadioShack has lost about 29% of its market cap from Tuesday's close. The loss in share price is primarily from the surprising earnings miss and loss.

I'd like to think the announced dividend cut didn't drive the price lower. A dividend cut was all but certain and as I sold the put options I knew the odds were high the dividend was on the endangered species list"

Also some blame an aging customer base...

http://www.thestreet.com/story/11639997/1/surviving-radioshack-in-a-wal-mart-world.html?puc=yahoo&cm_ven=YAHOO
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K0OD
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« Reply #1 on: July 27, 2012, 02:37:20 PM »

Radio Shack shares closed today at $2.58 on the NYSE down from nearly $80 at the peak of the tech bubble around 1999.
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K0JEG
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« Reply #2 on: July 27, 2012, 04:49:07 PM »

That's a shame. After the rise of Best Buy, Circuit City and Compusa I thought they'd be done. Instead they focused on selling mobile phones. Then they cut their parts inventory down to bare bones. Now that carriers aren't offering any deals to resellers (and Apple selling product direct in their stores),  and Internet retailers shipping product to your door in a day or so for 1/3 the price, there's just no reason for them to exist.

I always thought they could shift gears to something along the lines of a Build-a-Bear workshop, but for electronics projects (and teens/adults, not toddlers). There are so many cheap mini controllers and industrial PCs out there that there has to be a way to leverage that into a business. The problem with Radio Shack doing something like that is it would require a lot of training for their staff, something they've never been too interested in doing.
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W2IBC
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« Reply #3 on: July 28, 2012, 01:29:32 AM »

as far as i look at it. radio shack has been dead for along time..

its known as cell phone shack.. and I have no use for cell phones.
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I AM THE VOICE OF THE VOICELESS!
K1CJS
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« Reply #4 on: July 28, 2012, 06:44:17 AM »

...I always thought they could shift gears to something along the lines of a Build-a-Bear workshop, but for electronics projects (and teens/adults, not toddlers). There are so many cheap mini controllers and industrial PCs out there that there has to be a way to leverage that into a business. The problem with Radio Shack doing something like that is it would require a lot of training for their staff, something they've never been too interested in doing.

Training for the staff, over half of which are minimum wage workers who wouldn't know a ground rod from a divining rod, retooling their factories, overhauling their stores, and then stocking them would come to spending a pretty penny--something the current executives of Radio Shack are simply unwilling to do.

I look for them to become something of what Brookstone used to be--before they folded.  A purveyor of odd and unusual items--most of which can't find an outlet elsewhere.  They're already headed in that direction.
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KE4YOG
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« Reply #5 on: July 28, 2012, 07:58:52 AM »

I worked for Radio Shack for 3 years after college. It was from 1994 to 1997. I was "lucky" enough to be a store manager for a while. When I was with Radio Shack training was very important. We had to learn about all the products we had. The people I worked with tried to have a good relationship with all the local hams. I got my ticket while working for the company. I was there when the first 2 meter mobile came to the market. We sold many HTX-202 and 404. The 5/8 wave mag mount was a good antenna. Parts are almost pure profit. I would guess that on average 75% of the price for parts was profit. We would solder PL-259's on your coax if you didnt mind waiting until we werent busy. I had hams that would come in and buy RG-8 and ask me to solderthe ends. We went to hamfest and offered special pricing. Radio Shack has really fell apart. Charles Tandy is turning in his grave. Mr. Tandy wanted to make money. He wanted his employees to make money. His vision turned Radio Shack into what it was and Len Roberts and people since have slowly destroyed it. I only go if I really need something fast. I go in and I am asked "Can I help you?" I start explaining what I need and the sales person gets a glassed over look and at times they have simply went catatonic when the question did not involve cell phones.
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K8AXW
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« Reply #6 on: July 28, 2012, 09:02:35 AM »

YOG:  It's obvious you've been there, done that.  The first electronics store I was ever in was Radio Shack in Boston back in 54.  I've watched them change and decline since.

I was friends with one RS manager and she lamented on the "force feeding" of products and then turn around and run a huge sale on them, causing her to lose money twice.

I go to Radio Shack now because I need something immediately and know what I want and where it's located in the store.  Most clerks have no idea what I'm talking about nor do they know where most of the stuff is located.  I do understand their situation and don't let it bother me.  I just find it a shame.  

If Radio Shack goes belly up, then I will have a problem.
« Last Edit: July 28, 2012, 09:04:07 AM by K8AXW » Logged
G3RZP
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« Reply #7 on: July 28, 2012, 09:29:22 AM »

The 1950 ARRL Handbook has an advert for the 'The Radio Shack Corporation', at 167 Washington Street, Boston. They had stuff from Collins, Hallicrafters, Hammarlund, National, Hytron, RCA, Heintz and Kaufman, Barker and Williamson, Stancor and many others, including quite a few I have never heard of. Plus 9 amateurs on the staff.

How are the mighty fallen.......
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KB1LKR
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« Reply #8 on: July 28, 2012, 02:45:49 PM »

Alas both the marketplace and electronics technology have changed radically, at R.S.'s expense, almost certainly  dooming them to go the way of their smaller former competitor Lafayette Radio Electronics, who died out circa 1980. I do not envy management's situation.
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KE4VVF
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« Reply #9 on: July 28, 2012, 07:39:07 PM »

I use my Realistic HTX-202 almost daily and my mobile antenna is still the infamous Radio Shack 2m 5/8 wave (20 years old and still performing great.).  I wouldn't ever part with either of them.

It's unfortunate how far they have fallen. 
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K8AXW
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« Reply #10 on: July 28, 2012, 08:36:06 PM »

RZP: Thank you for that piece of info.  As a ham 'wannabe' back in 54 and being able to walk around that place was like a little kid in a penny candy shop and broke!  Not being a ham yet, no money to spend and in the military not knowing where I was to be sent next..... what a feeling!

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K0JEG
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« Reply #11 on: July 29, 2012, 08:53:40 AM »

...I always thought they could shift gears to something along the lines of a Build-a-Bear workshop, but for electronics projects (and teens/adults, not toddlers). There are so many cheap mini controllers and industrial PCs out there that there has to be a way to leverage that into a business. The problem with Radio Shack doing something like that is it would require a lot of training for their staff, something they've never been too interested in doing.

Training for the staff, over half of which are minimum wage workers who wouldn't know a ground rod from a divining rod, retooling their factories, overhauling their stores, and then stocking them would come to spending a pretty penny--something the current executives of Radio Shack are simply unwilling to do.

Or they could die, which seems to be the choice they've made.
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K0OD
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« Reply #12 on: July 29, 2012, 09:48:02 AM »

Quote
shift gears to something along the lines of a Build-a-Bear workshop

Build-a-Bear is a failed business model too with its stock selling around $4.50. Somehow I can't see girls having their 7th birthday party at Radio Shack. Retailing in general is very tough now with far fewer people wandering malls. Best Buy is suffering.   

For years, I've wondered who buys all those resistors, capacitors and chips from Shack stores except for me.  Aside from hams, I doubt I know anyone who has the slightest idea what an electrolytic capacitor is (Flux, maybe). Yes, that stuff is in RS only because of the monstrous margins and the genius years ago who decided they should be sold in packs of at least TWO.

The world still needs the Shack, just not one in every other strip center and mall.  And if it fails there may be an opening for something like it... just more product-focused, without cell phones and with vastly fewer stores.   
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AF6WL
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« Reply #13 on: July 29, 2012, 10:20:09 AM »

As an armchair CEO, they should look at the British Maplin stores as a 'how to survive in electronics retailing' model:
Very similar target audience but they did not fall into the cellphone trap.

http://www.maplin.co.uk/home.aspx

Just enough component choice for casual one day projects.
Then more general stuff for Hams, experimenters, music band electronics and computer upgrades.

Perhaps another key difference is store density - they stick to one store per major urban center - not every mall in every town.
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G3RZP
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« Reply #14 on: July 29, 2012, 10:59:13 AM »

I find Maplin rather pricey, and if there isn't a store conveniently near, there are lots better people to go to.

Still, so many hams don't build anything any more, so the available market has gone, and there aren't that many non-ham electronic hobbyists.
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