RSH data by YCharts
RadioShack is one of the nation's largest consumer electronics retailers in the United States, offering both online and in-store shopping. RadioShack sells more wireless telephones, telecommunications products and electronic parts and accessories than any other retailer. An estimated 94% of Americans live or work within five minutes of a RadioShack store or dealer. The company was founded in 1899 and is headquartered in Fort Worth, Texas. RadioShack trades an average of 2.5 million shares a day and has a market cap of $254 million.
RadioShack has zero buy recommendations out of 20 analysts covering the company. RadioShack may prove to be a great value at this price level, but I would consider looking at it as a much higher-risk investment than most other rapid decliners. There is a real bankruptcy risk in the near future, and RadioShack faces "ongoing" challenges.
If you want to allocate some of your high-risk portfolio to RadioShack, I believe we are at a price that supports the idea of true value investing, without rushing into it.
Based on technical analysis, RadioShack is in a very obvious bear trend, but also an oversold state. If RadioShack turns it around, the shares may bounce higher by a large percentage relative to other higher-priced stocks.
Its shares have traded slightly lower in the last month and are near breakeven, losing 1.2% less than a month ago.
The short interest is altitudinous at 46.5% and is a strong warning that short sellers expect the share price to fall considerably. I believe they are wrong to continue to hold short, at least in the short run. Look for short covering to boost the share price back up above $3 a share.