NEW YORK (TheStreet) -- Shares of RadioShack Corp. (RSH) are higher by 24.44% to 99 cents on heavy volume in early afternoon trading on Friday, after the company's largest shareholder, hedge fund Standard General LP, said it was in talks with RadioShack regarding improving its liquidity in advance of the holiday season, Reuters reports.
Standard General said its plan to help the struggling electronics chain, in which it owns a 9.8% stake, includes acquiring RadioShack's loans, and other commitments under its credit facility, Reuters added.
Along with several unnamed investors, Standard General said it would invest in the credit facility as part of a broader recapitalization of RadioShack, which would be completed by 2015, Reuters said.
Separately, TheStreet Ratings team rates RADIOSHACK CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIOSHACK CORP (RSH) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
You can view the full analysis from the report here: RSH Ratings Report