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Runs back up to $1.60+ if news of financing package comes through. Rises higher if management can actually come up with plan to close stores, reduce the bleeding of cash, and eventually return to profitability.
Continues to dwindle toward zero if no deal struck.
One way or the other, place your bets.
I assume you're using "sister firms" to imply, without explicitly stating a lie, that everything happening to American Apparel will happen to RSH as well?
That's some lawyer word smithing if I ever saw it.
Continuing to post the same copy/paste headlines isn't going to help your short case.
In the end, RSH gets a deal or doesn't - that will provide short term trading opportunities.
Long term - Bankrupt or they find someone who can execute a plan for profitability
Oh... SG is a private company. No shareholders to report to.
straddles & strangles are a good way to go.
I've been watching premiums (IV) on JAN 16 $1 Calls for a couple months now - lowest I've see it drop is to around 55%. Usually hangs out around 60-65% and will run above 70% on lots of volatility.
Big speculation in RSH so premiums aren't likely to come down too much until news.
Puts or calls?
I'm surprised no one has really commented on the interim-CFO's tweet (something about secret deal brewing)...
Was she hoping for a pump?
Is she even allowed to say things like that in her current capacity to the company?
I didn't say it was attractive.
I said they still bring in revenue in the billions, with a 'b'.
It would be different if they couldn't sell product, but they can and do. They just don't know how to control costs and their hands are tied via the creditors so they can't close out their worst performing stores.
I think if they get a credit lifeline and the right personnel in place they might be able to turn this sinking ship around.
Facts. You're Welcome.
PS - I'm not for or against RSH. In all honesty their management seems pretty incapable of running a successful retail business. Just watching for some trading opportunities.
With $3.5 billion in revenues, there is someone out there that can figure out how to turn that into a profit - Cut costs, close stores, innovative new products, etc.
RSH going under is a possibility, but its not like sales are hurting... they are just bleeding cash having to keep open unprofitable stores.
Ballsy.
No.
Probably short a certain amount of shares while covering other shorts. Keep the cover to short ratio above 1.0 and you will lower your overall short exposure.
LOLOL..
And now $1.02 on a 400k share spike.
I think the price gets suppressed down until enough volume is available on the ask, then the short sellers cover their shares by buying up all the volume on the ask. Easy way to cover your short without letting the price run up as you buy to cover.
Nothing to do with RSH, good or bad.
Check your math..
2.5B/100MM = $25/share
Not even close to a realistic target.
Amazon has no interest in RadioShack and probably not a single word of about buying out RadioShack has been said inside the Amazon Corporate Office.
RSH trading is acting strange today
How does the large bid indicate a short squeeze?
Thanks.
dang, $965k on the bid..
Guess that's the new floor?
I'm not sure there is enough much infrastructure to be worth $3B since RadioShack doesn't actually own most of their locations.
I don't think Amazon (or anyone) would buy RSH for their stores when they could take over their leases much cheaper after RSH declares bankruptcy.
I would rather see the financing deal come through and give RSH a shot at turning the boat around themselves.
It really doesn't matter how bad the report is.. everyone already knows the dire shape RSH is in at the current time.
The bets being made now are based on whether or not you think RSH can turn it around from this point forward. A UBS/SG financing package could give the breathing room RSH management needs to right their ship after many years of sinking.
How is it sad?
95% of my portfolio is blue chip, dividend growth stocks. 5% is "mad money" for gambles.
You might call it sad but a two week RSH trade just fully paid for the next three years of grad school for the price of a 3 credit hour class (think private school costs, not public).
If that's sad, I'll be sad any day.
Nope, RSH will have to completely revamp its business model.
It can be done but it certainly won't be easy (or likely).
Bulls trying to push ahead this morning on hopes that RSH will get the financing help it needs.
Source?
There are plenty of other, more realistic, reasons for the "cataclysmic" drop.
No but it will be tempting to pick up some more $1 Jan 16 calls and ride the oversold condition back up.
Looking like a gapper to the south.
Might pick up a few more calls today.
Ah, price drop coinciding with media scare makes sense.
Already made a tidy profit on last week's run up, started dipping back in to the JAN 16 $1 calls sub $1.10 today.
Might be seeing your "snapback" right now.
Volume up on a quick drop in price.
Wall at $1.10 right now with 110,200 shares for sale.
Up 140% for the week and heading into a 3-day weekend.
I'd be surprised if RSH pushes up much higher today.
Probably going to have some profit taking and a quick breather before resuming the bull trend next week.
Share price turnaround from big investor coming to table with possible plans for cash infusion.
Company has not turned around, yet.
Same here. I'm happy taking profit since I can't watch all day.
Although... I got out Wednesday with a healthy profit but if I had held until Thursday I would have had another 100% gain!
Oh well, appreciate what I got I guess.
Same.
Profits from today's sale of Jan 16 $1 calls pays for my entire Masters program that starts next month.
Will be back in RSH Jan 16 $1 calls when the IV drops back to the high 50's or low 60's.
Yep, sold 20% of my Jan 16 $1 calls and the rest are going to ride free for a few.
Same on the nostalgia.
I still go to RadioShack every now and then when I need to pick up resistors, transistors, etc. for a project and don't want to wait for Amazon to ship to me.
Long shot, but hoping RSH can right the ship.
They're slowly starting to carry more electronics kits/components again such as the Arduino boards and various sensors. I agree they need to get back to their electronics hobbyist roots. We'll see if they can last long enough to realize that re-transformation.
As far as an Apple buyout... not likely. RSH doesn't even own most of their stores (leases them) so not much cash could be gained there.
Only problem is - A few months ago there were over a billion shares on the bid and only 40 million or so on the ask.
Now there are 425 million shares at the bid and 300 million at the ask. Too many people buying at .0001 and selling at .0002 for a quick flip.
Stock won't move without serious news coupled with the people on the ask moving their bids up.
Management needs to come up with a strategy to move like CYNK did over the past month. Up 25,000%!
insert-text-here
Just over 7 billion shares OS per the 3/31/14 quarterly report.
9.8% = 686 million shares.
You sure you did your math right? Or did the OS balloon up from the last quarterly report?
You can unrestrict them now.
Etrade says they can do it but the fee's between the transfer agent and corporate counsel were something like $900...
It didn't "run to 60".
The stock was at .0004 and Management did a 1500:1 reverse split which made the equivalent price 60 cents. (.0004 x 1500 = 0.60).
You'll note that right after the reverse split the stock price quickly fell back to the trips on heavy selling which resulted in a bloated OS.
Its other traders buying 911 shares to get people exciting thinking the "MM's" are planning something.
Just ignore it.
Almost 488 million shares on the bid (about $97,600), that's insane...
Something's about to happen - either a massive dump to the bid the way to .0001 or huge accumulation at .0002 prior to a run up on news/promotion.
Here is the last website that was "completed" by HNSS after they had a "Coming soon" splash screen on it for over a year.
www.hnsfund.com
Read back over the last year to see what actually happened with this company. Take note how many shares POST reverse split Michael Black gave to himself (hint: over 3 Billion shares given to himself when the OS was only about 100 million...).
I hope everyone knows where all this volume is actually coming from... Trade accordingly.
Paid promotion (i.e. P&D).
But I'm sure you all knew about that already.