Monday, October 6, 2014

"RadioShack Rescue Package Decried as Stopgap Measure" $RSH

Bloomberg article

"'While we believe this financing package should allow RadioShack to avoid a near-term bankruptcy filing, it comes at a heavy cost to existing shareholders and may only serve to forestall its ultimate demise,' Anthony Chukumba, an analyst at BB&T Capital Markets in New York, wrote in a note today.

The new package values RadioShack at 40 cents a share, calculated Michael Pachter, an analyst at Wedbush Securities in Los Angeles. If the $120 million is converted to equity of 300 million shares, existing stockholders will retain only about 25 percent of the ownership, he wrote in a note today. Pachter has a $0 price target on the stock."

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