Many thanks to Dave and Skip for sharing this article from the Wall Street Journal which highlights the struggle RadioShack faces this year: an effort to modernize before their stock value slips to zero:
(Source: The Wall Street Journal, Marketwatch)
RadioShack Corp.’s mounting losses amid declining sales have been widely covered in the media. The company’s misfortune has also inspired Wall Street analysts to slash their target price on the stock, with a range this year of $1 to $3 a share.
However, that changed on Wednesday after B Riley analyst Scott Tilghman, who already rates the stock RSH +0.87% a sell, lowered his price target to zero from $1 a share after the company on Tuesday reported another in a series of wider-than-expected losses. The company’s cash level also plunged. Chief Financial OfficerJohn Feray said Tuesday the company has enough liquidity to execute its turnaround over the next 12 months, and that it’s examining expenses from utility bills to ocean freight.
“We think survival is in real jeopardy” with the cash burn and lack of asset value, the analyst told MarketWatch.