|Written by GSCR Staff|
|Wednesday, 25 July 2012 08:28|
As expected, the RadioShack Corp. (NYSE – RSH - $2.67) financials were pretty poor. Also, as predicted, the Company suspended their huge dividend. The stock is down 25% in 2 days and it is likely to drift lower. Continue to stay away, but watch it. It could be a sleeper at the end of the year.
Speaking of stay away, noted jewelry retailer Zale Corporation (ZLC - NYSE - $3.03) is on a tear today after announcing favorable capital restructuring. We are not fans of the space, given seasonality and the current economic environment. Moreover, the debt/cash ratio is pretty poor for the Company, even after the restructuring. They may live to fight another day, but it is not something I would chase or play. Substantial losses are still expected going forward.
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