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RadioShack's Super Bowl Comeback

This isn't the first time that the admission, via television commercial, that a company's products were not up to snuff. Late in 2009, Domino's Pizza (DPZ) unveiled a great ad campaign admitting that customers believed that its pizza was mass produced, tasteless, and like cardboard. The company used the ads to unveil its new pizza recipe, which was a huge success with consumers. Results improved, and the stock is up nine-fold since late 2009.

DPZ Chart
DPZ
data by YCharts

This also isn't the first time that a Super Bowl ad marked the beginning of a company's turnaround. During the 2009 Super Bowl, restaurant chain Denny's  (DENN), which had been struggling for years, announced that it was giving away 2 million free breakfasts on the following Tuesday.

It was a great, albeit expensive, way to reintroduce the brand to consumers, and it was the impetus for me to take another look at the company, one that I'd long forgotten.

What I discovered was a company that was getting back on its feet, paying down debt and moving away from company-owned restaurants toward re-franchising. The company has done a good job over the past five years, and shareholders have been rewarded.

DENN ChartDENN data by YCharts

We'll see if RadioShack can rebound as nicely as Denny's has; it will be a tall order, but from a marketing perspective, Sunday's Super Bowl commercial was a winner.

At the time of publication, Heller was long RadioShack.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Jonathan Heller, CFA,CFP® is president of KEJ Financial Advisors, his fee-only financial planning company. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

  Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.

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