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CAN RADIOSHACK RAISE THE VOLUME?


Consumer electronics retailer RadioShack (RSH (Remote SHell) A Unix command that enables a user to remotely log into a server on the network and pass commands to it. It is similar to the rlogin command, but provides passing of command line arguments to the command interpreter on the server at the same time. ) is in an unenviable position: Only 1 of 17 analysts who track it has a buy rating. Weak sales and Best Buy's dominance in the business have sunk its shares to 14.46, down from 35 last June. But some pros, who sniff a recovery in the works, say the time is ripe to buy. George Putnam III George Putnam III is editor and founder of The Turnaround Letter, a newsletter published by New Generation Research, Inc. which deals with investment opportunities related to distressed securities, bankruptcies and turnarounds. , editor of The Turnaround Turnaround

A situation where a company that has had poor performance for an extended period of time experiences a positive reversal.

Notes:
A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company.
 Letter, says a revival initiated by new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  Julian Day “JDN” redirects here. For the military IT system, see Joint Data Network.
The Julian day or Julian day number (JDN) is the integer number of days that have elapsed since the initial epoch defined as noon Universal Time (UT) Monday, January 1, 4713 BC in the
 is already well established, but the stock is still near its lows. RadioShack has many of the features Putnam considers key for a turnaround play: a widely recognized brand name and strong management with a well thought-out strategy to improve operating results. And the stock is cheap, he adds, trading at 9.3 times 2008 estimated profit of $1.60 a share. The lone bull among the analysts, David Strasser of Banc of America Securities, has a price target of 20.



Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.

Copyright 2008 BusinessWeek
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Article Details
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Author:Gene Marcial
Publication:BusinessWeek
Date:May 19, 2008
Words:189
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