RS Legacy Corp. (fka RSHCQ)

[Odessa99]

•••>Nearly six years ago, when news of a rescue financing package arrived to prevent Sirius/XM from a looming bankruptcy, that stock was trading for mere pennies a share. Five and a half years later, it is up more than 50x (5000%) from that level.

Although it is still severely challenged as a retailer, Radio Shack is still producing about $3 billion a year in revenue. The avg large cap company fetches a minimum valuation of 1 to 1.5 times annual sales. And if restored to health (still a big 'if'), it would likely fetch a valuation of a minimum of .5 times annual sales. With about 100 million total outstanding shares, that would place RSH shares at about $15 per share. That leaves a lot of room for upside from the current level.

As a side note, I think the same day phone repair service that was recently announced for a subset of Radio Shack stores will turn out to be a huge success, as many customers do not like to send their phone away and wait several days for repairs. It will also drive foot traffic for patrons that might not otherwise spend time in a Radio Shack store.

As always, simply my opinion.

RSH