Wednesday, June 11, 2014

"RadioShack price target cut to $0 at B. Riley" $RSH

A correspondent sent this in,

"B. Riley & Co. cuts their target to $0 as they view recovery for the company as unlikely. The company continues to burn cash at a rapid rate as steep sales declines persist and cost savings are difficult to achieve. Merchandising changes and store updates are underway, but the company's lack of capital and the necessity to move quickly without fully vetting decisions means turnaround hopes seem to rest on crossed fingers rather than hard data. They expect July/August to be very telling as the company will need to build inventory to support back-to-school, which ultimately means the co will have to maintain the support of its vendors, which they think may prove challenging. They think the odds of a bankruptcy filing are now over 50%."

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