NEW YORK ( TheStreet) -- It's been quite a rollercoaster ride the past several days for RadioShack (RSH), which continues attempts to turn around a stale business in the extremely difficult consumer electronics retail space. At this point, it appears as though the name is trading more like an option than a stock. The option, in this case, representing whether the company can turn itself around and ultimately survive.
The extreme volatility was on display Thursday amid reports that the company intended to hire an adviser to help it navigate some rough waters associated with a looming debt maturity and other balance sheet related issues. The fear that this really meant bankruptcy was on the horizon helped send shares as low as $2.18 during the, a 23% drop from the previous close, on nine times normal average volume. By the end of trading, shares recovered most of the drop, closing at $2.63.
Late in the day, the company attempted to quell the bankruptcy fears acknowledging that it was in discussions with investment banks, but stating that these talks were focused on further strengthening the balance sheet and its current $820 million in liquidity, and not on bankruptcy. On Friday, shares gained back 11%, after digesting the company's statement. Then, yesterday, the stock added another 8.5%, and the roller coaster ride continues, and the volatility is likely to continue.