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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV