Mike Trilivas

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

Looks like those Texas boys are beggining to make some noise around RadioShack...

www.star-telegram.com/...

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

Chad,

I have been holding Sears since 1991. In fact I inhereted the stock from my grandfather who had held it, I don't even know since when. Sears was/is a very diverse business and frankly so was Kmart. RadioShack isn't. This is a completely different ballgame and challenge for Julian Day.

At the end of day the lifeblood of the retail business is sales and sooner rather than later Radioshack will have to deliver the goods. I can understand the cost cutting measures, layoffs, store closings etc but when it comes down to they'll have to show top line revenue and growth.

This is a marathon for the current management but the stock had behaved as if it's involved in the 100 meter dash...Radioshack is not a turnaround story until top line revenue reverses the current trend and that's not going to happen any time soon. At least not this year.

RadoShalck's stock should not be trading at this levels and is extremely inflated based on hope, Julian Day's respect track record, manipulation, rumors, inuendo and short covering. In short, this is held together by gum and duct tape. The slightest mistep and this thing will drop like a rock.

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

Sorry Chad, but you can't compare Sears Holdings with Radio Shack. Radio Shack has completely lost its relevance in the market and i has lost it because of Best Buy, Circuit City, Fry's Electronics, CompUSA. Way too much competition in this space. You can shave off the excess, buy back the stock and boost earnings but at the end of the day this catches up with you... And it will catch up with RSH big time.

I have a Radio Shack about 1/2 mile from my house. Everytime i go there to get something, it seems as if i'm the only person there.

This stock trades at 38 TPE and 18FPE versus its peers which by the way are better companies and the worst thing of all is that their earnings are manufactured and people are cheering.

Hey I have an idea. Maybe Julian Day can close a coulple of hundred stores each quarters, buy back some more stock, layoff some more managers and employees and boost the earnings...and if the stock stays above $30 for another couple of weeks some of his options get to vest...

Now, that's what I call "Drive-by Re-engineering"

Good luck

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.