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Radioshack stock options

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radioshack stock options

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our stock, podcasts, books, newspaper column, radio show, and premium investing services. It's been clear for a long time that RadioShack NYSE: RSHCQ is in big trouble. RadioShack Stock 5 Year Price Chart, data by YCharts. RadioShack's last hope for a turnaround was an aggressive cost-cutting plan, announced in March, that called for closing more than 1, stores this year. However, the company's lenders scuttled that plan just 2 months later. After that setback, bankruptcy looked like RadioShack's best option. After 4 more months of dreadful results, RadioShack's stock team is nearing the same conclusion. The only people still in the dark are RadioShack shareholders and day traders looking to flip the stock for a quick profit. Don't get sucked into this madness -- RadioShack stock is almost certainly worthless. As of early May, RadioShack appeared to be spiraling toward bankruptcy. RadioShack's money-losing store operations are rapidly draining its liquidity reserves. Boosting smartphone sales this fall will make RadioShack's cash crunch worse Photo: By the time the critical holiday shopping season rolls around, RadioShack may have difficulty paying for inventory. Moreover, selling smartphones is a capital-intensive business that will further sap RadioShack's liquidity. In the meantime, RadioShack is out hundreds of dollars. Multiply that by hundreds of thousands of phones, and RadioShack could be in for a quick cash crunch. RadioShack alluded to the possibility of bankruptcy in the earnings report it released last Thursday, albeit in a very roundabout, jargon-filled manner. Its official quarterly filing with the SEC was more blunt:. Given our negative cash flows from operations and in order to meet our expected cash needs for the next twelve months and over the longer term, we will be required to obtain additional liquidity sources, consolidate our store base and possibly restructure our debt and other obligations If acceptable terms of a sale or partnership or out-of court restructuring cannot be accomplished, we may not have enough cash and working capital to fund our operations beyond the very near term, which raises radioshack doubt about our ability to continue as a going concern. RadioShack doesn't have much time to figure out its next move, either. Standard General -- a hedge fund that owns a significant amount of RadioShack stock and debt -- is reportedly working with UBS on a new financing package to stave off bankruptcy. However, any deal would have to be wrapped up within days, according to The Wall Street Journal. Realistically, this means that short of a miracle, RadioShack will eventually declare bankruptcy. Even if RadioShack can secure some extra liquidity to make it through the holiday season, the company is burning cash so quickly that it would likely be in dire straits again by next year. To survive more than a year or radioshack, RadioShack needs to options its debt load and interest burden, not add to it. As obvious as it is that RadioShack is spiraling toward bankruptcy, Mr. Market has looked the other way. Surprisingly enough, RadioShack stock rose on Thursday, radioshack the company announced that it needed to take quick action to address its persistent losses and liquidity problems. RadioShack Stock 1 Week Price Chart, data by YCharts. RadioShack stock's wild gyrations during the past few weeks have attracted hoards of day-traders looking to flip the stock for a quick profit. However, this is a fool's game. Not to be confused with a Fool's game: Some companies like American Airlines have been able to compensate stock well, despite going through bankruptcy. RadioShack isn't likely to be one of those companies. Whereas American Airlines benefited from an industrywide revival, physical consumer electronics retail stores won't be making a comeback. While RadioShack CEO Joe Magnacca recently talked about "improving trends" in the core retail segment, all he meant was that the rate options sales declines has slowed -- but revenue is still falling! Modest operating improvements won't create any value. In a worst-case scenario, RadioShack will have to liquidate. In a best-case scenario, it options develop a workable plan to stay in business. The only thing investors really need to know about RadioShack stock is that they should stay far away. RadioShack is rapidly burning cash, liquidity is already at a dangerously low level, and the company needs massive comparable options sales growth to get back to breakeven. There is a good chance that the RadioShack story ends with a total liquidation of the company within the next year or so. But even if RadioShack manages to stave off that disastrous ending, it is still almost certain to declare bankruptcy in order to get out of unprofitable store leases and clean up its balance sheet. Either way, owners of RadioShack stock are likely to get nothing, give or take a few pennies. Any upside from a potential turnaround or fire sale will benefit unsecured creditors, not RadioShack shareholders. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free radioshack 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. He is an avid stock-market watcher and a value investor at heart. He primarily covers airline, auto, retail, and tech stocks. Follow him on Twitter for the latest news and commentary on the airline industry! Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Stock Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep? 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02.05.12 - Broken Wing Butterflies

02.05.12 - Broken Wing Butterflies

2 thoughts on “Radioshack stock options”

  1. alibabaaa says:

    But from your post, it seems to me that my homework should be to not wear clothes, and see if I get called a hipster.

  2. slashi says:

    In a bizarre make-shift seance, two worlds fight for the same space.

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