Radio Shack's Answer to Moody's Concern About Cash Burn
PR:
"As part of its commitment to reinvigorate its stores and bring innovative products to market, RadioShack is opening 21 new interactive remodel stores in the San Francisco Bay Area."Spending money on store renovations is not what I'd be doing with unsecured debt trading at a 31% yield to maturity (bonds were down a couple points today).
Think about it: would you borrow money at 31 percent to open thousands of small stores selling consumer electronics and cell phones? No? Then would you borrow it to to make marginal improvements to the stores?
1 comment:
Similar market caps for RSH & STPFQ now.
If STPFQ ain't dead yet, hard to think RSH can get much lower..
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