Stock to Sell #4: RSH
Radio Shack (NYSE:RSH) is struggling with competition from giants such as Amazon (NASDAQ:AMZN) and Best Buy (NYSE:BBY). The company met analysts’ expectations in its fourth-quarter report, but that came on the heels of four straight earnings misses, and first-quarter results announced April 24 went back to being another miss.
Part of the problem is that a higher percentage of the company’s sales are coming from mobile products, which carry very low margins, and changes at Sprint have also impacted results. In addition, in early March, right as the company was searching for a new lead advertising agency, Executive Vice President and Chief Marketing Officer Lee Applebaum abruptly left the company. I would stay away from the stock until there’s a clearer picture of where the company is going.