Mike Trilivas

Dell-RadioShack Merger? I'm Not Holding My Breath

You shoudn't be holding your stock either. Not at this price. Radio Shack has a LOT of high expectation baked in and frankly it does not deserve to trade at this price. Looking at their latest 10Q it appears to me that they are beating the bottom line due to the restructuring and there's so much you can cut before it catches up with you and it will. Net sales and Op revenue is down -14.5%. Comparable store sales down -9.2%. Profit margin down. Gross margin up primarily because of the excise tax refund.

Between March 1 thru March 31st they started buying back stock, $45mil worth woth an avg. price of $25 and change.

These guys have been laying off store managers, replacing them with less seasoned lower paid folks.

very frothy stock with a tremendously high trailing PE, very high forward PE and PEG. There is NO growth in Radio shack to justify the current price. This stock should be trading 20% lower from here.