"RadioShack (RSH) is really not the unmitigated disaster that the overwhelming majority are making it out to be," declares SA author Charles Moscoe, making a bull case for the hard-luck electronics retailer. Management has said RadioShack has enough cash for 12 months, and the company is aggressively slashing costs in the interim.
Moscoe is also pleased with recent insider buying, and notes other struggling retailers such as Rite Aid, Best Buy, and SuperValu have risen sharply from their lows.
Though he admits the risk of bankruptcy is "material," Moscoe considers the risk/reward favorable in light of RadioShack's potential upside. He also thinks equity holders might not be completely wiped out should a bankruptcy happen.