RadioShack Updates: Stock Heads to $14.80, Recovers from 52-Week Low

0.86
Trefis
RSH: RadioShack logo
RSH
RadioShack

RadioShack’s (NYSE:RSH) stock price touched a 52-week low last week closing at $10.66 last Friday. However, the stock price has shown signs of recovery in the past few trading days. In last one month, RadioShack has faced credit downgrades by leading rating agencies including Standard and Poor’s (S&P) and Fitch. S&P downgraded it one notch further into junk territory as it expected that its weak operating and financial performance will continue into 2012. [1] Fitch also dropped its rating by two notches to B-plus, putting it four notches below investment-grade territory. [2] We believe RadioShack is juggling with very intense competitive environment for mobility products and weak economic conditions.

RadioShack has recently decided to extend its promotional offer till year end wherein it offers free phones to customers when they sign up for a wireless service contract. The customers get to choose from at least 20 phones, up from five to ten normally. The promotional campaign has received a good customer response. [3]

Yesterday, RadioShack also made announcement regarding its selection of Weber Shandwick as its public relations agency. [4] In 2010, it spent approximately $206 million on advertising. Prior to this, Butler, Shine, Stern and Partners served as its creative advertising agency since April 2009.

Relevant Articles
  1. RadioShack’s Q3’15 Earnings Review: The Company Dreams Of A Better Fiscal 2016
  2. RadioShack’s Tussle With Its Lead Lenders Can Leave The Company Bankrupt
  3. RadioShack’s Q3’15 Earnings Preview: The Company Has A Long Way To Go To Turnaround Its Business
  4. RadioShack Revamps Its Website In Time To Cater To The Upcoming Holiday Season
  5. RadioShack’s Expanding ‘Fix It Here’ Footprint Can Help Increase Its Customer Base
  6. RadioShack’s Restructured Financial Deal To Provide Much Needed Cash For Its Operations

See our complete analysis for RSH stock here

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. S&P lowers RadioShack one notch on margin pressure, Market Watch []
  2. Fitch lowers RadioShack’s junk-grade rating, Market Watch []
  3. RadioShack Extends Free Phone Promotions Through Year-End, WSJ []
  4. RadioShack Selects Weber Shandwick as Public Relations Agency of Record, Market Watch []