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You may be interested in buying an HDMI cable or a cell phone from RadioShack (RSH), but it looks like a few private equity companies and one competitor may be interested in buying the entire company. According to dealReporter, RadioShack had set a July 1 deadline for non-binding indications of interest from any company that was looking at buying the company.Analysts are speculating that the same private equity companies that were mentioned in a June 1 New York Post article -- Blackstone Group, Kohlberg Kravis Roberts, Bain Capital and TPG -- might still be interested in the consumer electronic retailer. That same article also mentioned that Best Buy Co., Inc. (BBY) may be interested in clearing the competitive landscape by acquiring RadioShack.
Analyst Expectations: Looking ahead to next quarter's earnings announcement, analysts expect RadioShack to earn $0.41 per share -- which is 2 cents more than the company made during the same quarter last year.
Wedbush, the last firm to issue a rating on RadioShack, reiterated its underperform rating and gave the stock a price target of $22.
Fundamental Analysis: RadioShack has a good fundamental outlook -- based on the return on equity (ROE) the company is providing and the stock's PEG ratio.
RadioShack has an ROE of 22.14%. When you compare that to Best Buy's ROE of 21.59% -- another stock in the Electronics Stores industry -- you can see that RadioShack is providing a solid return to its owners.
RadioShack has a PEG ratio of 1.51 -- which is high compared to the industry average of 0.94. Typically, a PEG ratio less than 1 is a sign the stock price is not overvalued.
Technical Analysis: RadioShack has lost 9.12% during the past month and is currently trading above its 200-day moving average but below its 20-day and 50-day moving averages.
Disclosure: Hansen does not own shares of the stocks discussed above. Positions can change without notice.
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Reader Comments (Page 1 of 1)
7-08-2010 @ 2:36AM
lukeev anssi said...
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8-16-2010 @ 1:21AM
jessiccarobertt said...
I did all the paper work on December 10th at my local radio shack. I'm waiting for some kind of email but i have not received it yet. How long does that usually take? I'm so broke, I hope they didn't make me fill out paper work and give them a copy of my identification and social for nothing.