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Did RadioShack Just Become A Buy?
Posted February 1, 2012
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By Diesel
Yesterday RadioShack (RSH) saw its stock price plunge by 30% after the company announced that its earnings in the last quarter would be much lower than expected,and its future earnings guidance would also be reduced significantly. I believe this plunge will create a great opportunity for long term investors as it pushed RadioShack's stock price below its book value. This may be the perfect time to initiate a long position in this retailer with a history of strong dividends.
Here is why the stock plunged and why it became a buy.
The company was expected to earn 36 cents per share last quarter, however it said that its earnings were in the range of 11-13 cents per share. Also the company announced that it would lower its guidance for 2012, but the company did not announce a specific number on its yearly guidance yet. The company's market cap is down from $1 billion to $700 million. After the last plunge, RadioShack's P/E value moved down to 6.54 and its dividend yield moved up to 6.93%. READ FULL ARTICLE HERE
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