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Haha that was pretty funny.
Thanks for the link.
No worries as long as it was always a gamble/for fun.
I almost jumped back in for a LONG shot on the 2016 $1 calls, but decided to wait until February to see if the rumors were true.
Glad I waited, but sorry for RSH to go like this.
Agreed. I like the convenience of my local Radioshack.
But seriously.. billions in revenue every year and they can't figure out how to turn just a little profit?
Quick back of the envelope calc:
If management could have closed enough stores to turn $100MM in profit on $3B in revenue.. that's a profit margin of 3% and would make the EPS = $1.00. 3% is seriously low, but at least its positive.
Tack a MODEST PE of 6xEPS and you get a $6.00/share stock price.
How in the world can the company not figure out how to squeak out 3% profit? Mismanagement for decades.
I don't think RSH got a roommate.
I think they sold their house and are sleeping on the street.
They aren't, but per Etrade they can be for a $500 fee..
Not exactly worth it when there is no volume and price is stuck at .0001.
Only need a 25,000% increase!
That's probably more of a positive thing, rather than the negative way you are spinning it.
Radioshack WANTS to close a bunch of stores in order to trim the fat and stay in business.
Closing stores does not imply bankruptcy... at least not yet.
Honestly, I highly doubt a buyout is probable.
Despite being a "worthless" company, as some posters have been touting, RSH still brings in billions in revenue each year. All they need to do is cut operational expenditures and close under performing stores and they could be back in the black in a couple quarters.
Not sure why its so hard to execute a cost cutting plan, except for the lenders have been putting up road blocks to closing stores for the past year, furthering RSH's losses.
Oh, and the executives should take a HUGE pay cut for essentially running RSH into the ground. They should not be rewarded for losses.
Its looked this way, and had several SEC warnings about delisting, for >6 months now. SEC warnings are a real thing, but there are many many ways to postpone/get around delisting that the market is not too worried about that when the big issue is whether or not RSH is going to file for bankruptcy.
www.radioshackexcess.com - they have several more pallest of equipment for auction than they did a few days ago. If you click on the "more information" link, a spreadsheet containing itemized inventory is available for each pallet.
You are correct that RSH rents the majority of their locations. It doesn't make a lot of sense to think someone like Amazon would come in and take over their leases, and even if they do, that is not necessarily accretive to RSH (although it does reduces operation expenditures).
Could be.
Probably just got oversold due to all the "imminent bankruptcy" news from last week and has to find its settling point. Actually has been looking like strong buys today (big blocks of shares going through).
RSH shares will have value until the day they file chapter 11, if that is their plan forward.
Being an individual, I wouldn't waste the time or money trying to get a pallet of returned and possibly defective merchandise.
I will say, however, that reselling merchandise like this is very common in the retail industry. Not sure if it has anything to do with the current bankruptcy possibilities that RSH is mulling over, especially since the site has been active for 5-6 years.
Also like to add that the inventory list has this disclaimer..
Wow, wonder if I can buy a pallet.
The first one I clicked on has a reserve price of $493 - I looked at the inventory on that pallet and there are 4 pairs of beats by dre urbeats headphones that retail for about $100 each. Current bid for the pallet is $100
Interesting, although as of now I only see 1 pallet of merchandise for sale (hardly a "liquidation" as you say).
Something else to note - www.radioshackexcess.com was created in 2009 so its nothing new. It was also created by Alan Scroope, an Ireland man who started a company called "Free Flow". FreeFlow was established as the premier solution for assisting the world's leading brands remarket inventory profitably and responsibly.
So while the site is not new, you might have uncovered how RSH will sell off inventory in the event of bankruptcy.
Good find.
Another "rare trip" to the
Right... Re read my post...
I said if they had nothing material to say, then there would be no reason to file an 8K.
RSH execs could still be "serious about being able to turn around the company" without filing 8K's. All that would mean is they haven't figured out how to do it yet so there's no material information to make public.
Note I think the most likely scenario is RSH goes into bankruptcy. If management hasn't figured out how to turn this company around after years of losses then a few more quarters probably won't help them.
I think acquisition is the least likely scenario to play out.
RSH either goes into bankruptcy, or gets another cash infusion and ACTUALLY implements a turnaround plan.
So far it doesn't seem like RSH has done anything in the way of actually solving its problems, rather they continue kicking the can down the road.
Would be preferable to bankruptcy announcement for the guys that are long.
Out of bankruptcy does not mean "outside of bankruptcy".
Buy the assets out of bankruptcy means once RSH declares bankruptcy, a PE firm could come in and buy its assets.
At least that's how I've always understood it.
The part I find interesting is even with all this bankruptcy talk, RSH ended the day with about 100k shares at the bid. Even when shares get dumped to the bid, people are there to buy in large quantities.
Not sure you can categorically state "smart money is not touching this penny play". You really have no idea who is buying RSH shares..
A lot of big money managers actually do keep a small SMALL percentage of their funds available for situations just like RSH's. If they see light at the end of the tunnel for Radioshack, they won't hesitate to buy shares.
Not everyone is as risk averse as you, and not everyone who takes risk is an "idiot throwing money" as you often quote.
A relatively small dollar value traded at the right time (after hours when the market is closed) is creating a panic and a tanking share price on a PR stating the possibility of RSH going bankrupt as soon as next month (like this is NEW news??).
I think the after-hours selling is going to panic people this morning and I would expect to see more selling by the retail investors once they wake up.
Still don't see the significance of the PR though - it also stated RSH may not file for bankruptcy if they make another deal. Essentially the PR says "We are just guessing here folks".
Source please.
Some RSH stores ARE, in fact, closed. This was part of the plan all along to minimize losses...
It came on during the Bachelor too, if that is more your speed (source: the girlfriend makes me watch it)
I saw the ad multiple times in my area. Pretty much only watch Sunday football so I'm sure it was on even more than I noticed.
Ha, ok... I'm observing that today as well.
Good to see you back - you were oddly quiet on yesterday's big move up.
I do agree with you, however, that the $500MM loan offer should not affect share price.. It is, as you say, contingent on RSH filing Chapter 11 which typically cancels out common shares.
To me, RSH declining the offer would signify confidence the company can remain solvent and justify a positive move for the share price.
We all know the situation they are in now so no need to rehash it. Everyone is waiting to see how they come out of this. On top, or in bankruptcy court.
Hmm... I honestly have no clue what to expect.
Seems like the "deadline" is Salus' way of putting a gun to RSH's head (as I've stated before) to declare bankruptcy.
If RSH doesn't NEED to declare bankruptcy... why would they?
Found this article that explains what Salus might be trying to do better than I did.
Link
I think the deadline is Salus' way of holding a gun to RSH's head.
Salus wants RSH to declare bankruptcy and they want them to take their $500MM loan so they can profit 6 ways to Sunday.
If RSH doesn't absolutely need to declare Chapter 11 in order to survive, I don't think they will capitulate to financial bullying.
We shall see.
They still bring in billions in revenue... its not like no one wants what they are selling.
I'll agree with you on the point that they should have seen this coming a DECADE ago and altered their business plan to change with the changing landscape of retailers.
They didn't do that and now they have to play catch up. But don't be mistaken, there is still demand for what's on their shelves. The trick is to cut a large percentage of those brick and mortar costs so they can actually see some profit again.
Agreed. Sure seems like the act of receiving billions in revenue and turning it into SOME profit should be simple.
Spend less than you earn. Done!
Salus blocked RSH from closing 1,100 stores further increasing RSH's losses. They WANT RSH to go bankrupt.
Now they dangled a $500MM "carrot" in front of RSH's nose, saying, "if you declare bankruptcy, we'll give you this fat loan to help you recover".
Finance is a cutthroat game and Salus figured out they can make more money in an RSH bankruptcy and are actively trying to speed up the process.. Curious how it will all shake out.