tag:blogger.com,1999:blog-1527840491496268397.post5686899533547098379..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: "FITCH: RADIOSHACK HAS LIMITED OPTIONS AS LIQUIDITY DWINDLES" $RSHUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-43745612990183097532014-06-11T15:20:23.125-07:002014-06-11T15:20:23.125-07:00The available revolver credit also requires pre-pa...The available revolver credit also requires pre-payments which will become increasingly difficult for RSH to make.<br /><br />Far too much attention is being given to credit liquidity and far too little to shareholder liquidity.<br /><br />RSH needs to maintain a $100 million market cap over a 30-day trading period to remain listed on the NYSE (on a pure valuation basis).<br /><br />A de-listing would substantially impair equity, given that 72% of the float is institutionally-held and many funds cannot hold shares that trade OTC.<br /><br />In addition to the credit liquidity issues, many other factors support speculation that RSH will get de-listed sometime between July and October of this year.<br /><br />While the 2014 puts offer sizable returns, the OTM 2015 and 2016 puts considerably reduce the timing risks involved and are low hanging fruits that deserve considerable leverage.Anonymousnoreply@blogger.com