RadioShack tops estimates, but market not impressed

But let's not forget that RadioShack has legitimate growth problems. Indeed, total net sales dipped almost 3%, according to the press release, and comps went down 4%. That isn't a healthy situation for a retailer.

I will say this, though: the business seems to be doing okay when it comes to cash flow. For the six-month period, RadioShack saw an increase in cash generated from operations. Unfortunately, the company also experienced a decrease in its gross margin, brought on by an unfavorable product mix.

I would not buy RadioShack here. Like I said at the beginning, shares were down after the data -- they closed lower by well over 6% on Monday on very heavy volume. If I were looking to get into an electronics retailer, I would probably look at Best Buy Co., Inc. (NYSE: BBY) before all other competitors. If you happen to have a profit in a RadioShack position, I would consider booking it. Hey, maybe the stock will rise after a pause, but perhaps taking some profit now would be the safest way to play things.

Disclosure: I don't own any company mentioned; positions can change without notice.