NEW YORK (TheStreet) -- RadioShack (RSH) shares are struggling to stay above water and, with a potential delisting from the New York Stock Exchange hovering, the struggling electronics retailer likely has little time left to turn itself around against the backdrop of a difficult environment for consumer electronics, made worse by Amazon (AMZN) .
Shares have been below the crucial $1 mark since June 20, but buoyed by rumors of a potential lifeline at the end of last month, RadioShack's shares surged back above the $1 mark. On Tuesday, though, the stock dropped again below a dollar following Wedbush Securities analyst Michael Pachter's comment that a bankruptcy organization is "imminent."
RadioShack is set to report fiscal 2015 second quarter results on Thursday. Consensus estimates are calling for the Fort Worth, Texas-based company to report a loss of 66 cents a share on revenue of $736 million for the July-ending quarter, according to Thomson Reuters.
Earlier this year, RadioShack disclosed that it planned to close approximately 1,100 stores. RadioShack has roughly 4,400 stores in the U.S. and Mexico. However the company ran up against pushback from its lenders on the amount of stores it planned to close. The company has amended that number since then and plans to close up to 200 stores in fiscal 2015.
Shares of RadioShack are down 11% to 83 cents on Wednesday. The stock is down 78% over the past year. Here's more detailed information on what analysts are saying.
Michael Pachter, Wedbush Securities (Underperform; $0 PT)
In May, RadioShack announced that it was unable to successfully negotiate consent from its lenders under the 2018 Credit Agreement and Term Loan to close up to 1,100 stores. The terms offered by lenders were not acceptable to the company. RadioShack's operational decisions are now being vetted by creditors and equity investors are no longer relevant to management decisions-the creditors clearly are in control of the ship and, in our view, the ship is sinking. The credit agreement allows the closure of 200 stores per year or 600 over the life of the agreement. We believe a bankruptcy reorganization is imminent.
Reiterating our UNDERPERFORM rating and lowering our 12-month price target to $0 from $1 as declining CE (consumer electronics) sales and continued margin erosion will likely compel the company to enter bankruptcy in order to pursue its turnaround. Our price target reflects our expectation that creditors will force a reorganization and wipe out RadioShack's equity.