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Would You Buy a Used iPad?

Would you buy a used Apple (AAPL) iPad? It seems that the market for used electronics is booming. Much of it is resold to developing countries. But even here in the U.S. consumers are dumping their old iPads and buying the new iPad2, the Financial Times reports.

That sets up a huge secondary market. The big beneficiaries are eBay (EBAY) and the Apple Store. On eBay, for example, sales jumped from 3,300 to 7,700 in a week with prices dropping from $531 to $484 in just one week. If buyers had done some research they could have bought the same unit from the Apple Store for $399, according to the FT.

Continue reading Would You Buy a Used iPad?

Analyst Calls: ADBE, CE, CISG, DOW, ELN, GT, NSC, NVO, RSH, XLNX ...

Analyst Upgrades

  • Xilinx (XLNX) to buy from hold at Auriga.
  • Orion Energy (OESX) to buy from neutral at Roth Capital.
  • Goodyear Tire (GT) to buy from fair value at CRT Capital.
  • RadioShack (RSH) to neutral from underperform at Wedbush.
  • Novo Nordisk (NVO) to buy from neutral at Goldman.

Continue reading Analyst Calls: ADBE, CE, CISG, DOW, ELN, GT, NSC, NVO, RSH, XLNX ...

Radioshack Sees Weak Q4 Earnings

RadioShack (RSN)It's not a great way to start the year for RadioShack (RSN) as it announced it will have a weak fiscal fourth-quarter. In Monday morning trading, the shares were off nearly 12% to $15.52.

There was also something else that concerned investors: RadioShack's CEO, Julian Day, plans to retire on May 16th, which is when the company will have its annual shareholder meeting. The CFO, Jim Gooch, will be the replacement.

Continue reading Radioshack Sees Weak Q4 Earnings

Analyst Calls: AA, AOL, BLK, CSCO, GOOG, INTC, JBL, JBLU, YHOO ...

Analyst Upgrades

  • Intel (INTC) was upgraded to overweight from equal weight and Autodesk (ADSK) to equal weight from underweight at Morgan Stanley.
  • Citigroup upgraded Blackrock (BLK) to buy from hold.
  • 99c Only Stores (NDN) was upgraded to buy from hold at Deutsche Bank.
  • PetSmart (PETM) was upgraded to overweight from equal weight at Barclays.
  • Piper Jaffray upgraded Ruth's Hospitality (RUTH) and Morton's Restaurant (MRT) to overweight from neutral.
  • BioMed Realty (BMR) was upgraded to market perform from underperform at FBR Capital.
  • Wells Fargo upgraded Piedmont (PDM) to market perform from underperform.

Continue reading Analyst Calls: AA, AOL, BLK, CSCO, GOOG, INTC, JBL, JBLU, YHOO ...

RadioShack Takes a Hit After Earnings Report

RadioShack (RSH) is not getting good reception this afternoon. At the time of this writing, with about two hours to go before the end of the trading session, shares of the electronics retailer are down 7.8% to $21.03. Volume is heavy.

The third-quarter earnings report was released earlier today, and you may wonder what's up after you see the data. According to Briefing.com, net income of 37 cents per share was two pennies ahead of the estimate. Same-store sales increased over 6%. Overall revenue also seemed pretty decent. So why the negative response by the market?

Continue reading RadioShack Takes a Hit After Earnings Report

Quarterly Earnings: Goodyear and RadioShack

goodyear earningsLet's take a look at two companies that reported quarterly numbers on Thursday. One is a concern that helps cars have a smooth, safe ride; the other is a business that helps consumers buy the electronics they need.

The Goodyear Tire & Rubber Company (GT) has a one-year chart that I would argue is not too attractive. The 52-week low on the stock is $9.65; the 52-week high is $18.84. Yesterday, the shares were under pressure after the release of the second-quarter report. They closed down 5.7% to $11.27 on Thursday. Volume was very strong.

Continue reading Quarterly Earnings: Goodyear and RadioShack

Radio Shack: Takeover or Acquisition Target

RadioShack RSH logoYou 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.

Continue reading Radio Shack: Takeover or Acquisition Target

Is RadioShack Ready for a Takeover?

RadioShack RSH logoSeveral takeover rumors cropped up this morning. One of those is that RadioShack (RSH) is in the sights of many possible suitors. Those suitors include Blackstone Group (BX), Kohlberg Kravis Roberts, Bain Capital, TPG, and potentially Best Buy (BBY).

These rumors had the shares trading higher this morning, which is really a continuation of RSH's longer-term trend. Since March 2009, RSH has trekked steadily higher, overtaking the 10-month moving average in the process. That said, the stock is stuck just below the $23 level.

Continue reading Is RadioShack Ready for a Takeover?

Best Buy Preps for UK Launch, iPad's Debut

There's no shortage of headlines lately for big-box retailer Best Buy Inc. (BBY). Not only has the company been linked with the merger-and-acquisition speculation surrounding RadioShack (RSH), but the retailer is also preparing to make its debut on British soil. And, as if that weren't enough, Apple's (AAPL) kind-of-highly-anticipated iPad will hit Best Buy's shelves April 3.

Starting with the buyout rumors, the New York Post reported Friday that RadioShack is "looking to shack up with a deep-pocketed investor." While private-equity firms are eyeing the retailer as a potential leveraged takeover target, the newspaper added. "Another possibility is a merger with big-box rival Best Buy, which lately has experimented with a smaller retail format to meet fast-growing demand for smartphones and other wireless gadgets."

Continue reading Best Buy Preps for UK Launch, iPad's Debut

Earnings Highlights: AIG, Dell, Gap, Heinz, Macy's, RadioShack, Sears ...

Here are some highlights from this past week's earnings coverage on BloggingStocks:

  • American International Group Inc. (AIG) posted a big loss and warned it may require additional assistance.
  • Athenahealth (ATHN) shares sank after it delayed earnings and its annual report, and warned of restatements.
  • Barnes & Noble Inc. (BKS) Q3 sales jumped on popularity of the Nook reader but same-store sales declined.
  • Brocade Communications Systems Inc. (BRCD) disappointing report and guidance caused a sell-off in shares.
  • Dell Inc. (DELL) acquisitions and better-than-expected earnings may not be enough to stop shrinking market share.
  • Gap Inc. (GPS) rose after it beat earnings estimates, raised its dividend and announced stock buybacks.

Continue reading Earnings Highlights: AIG, Dell, Gap, Heinz, Macy's, RadioShack, Sears ...

RadioShack Earnings Surge, but Investors Not Impressed

RadioShack (RSH), an electronics chain in competition with Best Buy (BBY) and Wal-Mart (WMT), posted fourth-quarter results on Monday after the bell. Sales increased well over 4%. Same-store sales at company-operated locations and kiosks in the United States expanded by over 6%. The bottom line jumped 25% to 60 cents per share.

RadioShack had a relatively strong quarter. Gross margin improved, as did the cash and cash equivalents line on the balance sheet (long-term debt went down, too). Cash from operations for the full year did contract by 10%; it would have been nice to see an increase in cash flow to go along with the rest of the data set, but at least the bottom line was ahead of estimates (if only by a penny).

Continue reading RadioShack Earnings Surge, but Investors Not Impressed

Shorts Take a Bold Stance Ahead of RadioShack's Earnings

Electronics retailer RadioShack Corporation (RSH) -- or "The Shack," if you take your cues from aggressively quirky marketing campaigns -- is preparing to unleash its fourth-quarter earnings results. RadioShack will take the earnings stage after the market closes next Monday, Feb. 22, with analysts surveyed by Thomson Reuters expecting a per-share profit of 58 cents. This would mark a modest improvement from the company's year-ago profit of 50 cents per share.

RadioShack has a mixed history in the earnings spotlight -- during the past four reporting periods, the company has surpassed consensus estimates twice, and fallen short on the other two occasions. However, there's just cause to believe that business is booming at The Shack, since the retailer scored a deal to sell a little gadget known as the iPhone in its retail outlets.

Continue reading Shorts Take a Bold Stance Ahead of RadioShack's Earnings

Best Buy Outpaces Rivals in Electronics Sales

Best Buy (BBY) was the big winner in this year's fourth quarter. It took the lion's share of consumer electronics sales after competitors Circuit City and CompUSA shut down earlier in the year.

No doubt, there was enhanced competition from mega-retailer Wal-Mart (WMT) and online behemoth Amazon.com (AMZN). But Best Buy managed to nip at customer heels with deep discounts on flat-panel televisions and laptop PCs that just weren't seen at the competition (yes, I looked). Laptops for $299 and 32" flat-panel TVs for $249 are probably loss leaders by a big margin -- but those prices make a dent on consumer psychology.

Continue reading Best Buy Outpaces Rivals in Electronics Sales

Short City Update: Radio Shack - cover short

An update on a short position: Radio Shack Corp. (RSH), recommended on August 4, 2009 at a price of $16.13: cover short.

They don't all work out. Further, one of the surest signs that an economic recovery is gaining strength concerns previously fundamentally-supported short recommendations that don't perform.

Continue reading Short City Update: Radio Shack - cover short

Consumers sick of recession, may spend extra on holidays

If consumers try a little harder this year, the holiday season has a shot of hiding memories of last year's nightmare for retailers. The retailers are doing their part, with Walmart (WMT), Gap (GPS), RadioShack (RSH), Walgreens (WAG) and many others opening their doors Thanksgiving Day, giving shoppers the opportunity to start their spending early. There's a chance that consumers will spend a bit more this year to thank each other for keeping their belts so tight for so long.

Forecasts of the season's ultimate result remain difficult to pin down. Some expect a year-over-year decline of 3%, and predictions range to an increase of 2%. Credit is harder to come by, and unemployment remains over 10% and at a 26-year high. But, the pressures on spending are offset by pent-up emotion and a stabilizing financial environment -- even if it isn't getting better yet, it doesn't seem to be getting worse.

Continue reading Consumers sick of recession, may spend extra on holidays

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Last updated: February 11, 2012: 01:09 PM

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