Just days after RadioShack Corp. (RSH) reported fourth-quarter 2009 earnings, rumors started flying that the company was a possible takeover target. Shares rose to a new 52-week high until today, when RadioShack shares jumped again to a new high after just half an hour of trading.

Reports of a takeover are once again responsible. The New York Post has a story citing investment banking sources who say that RadioShack is considering a sale that could tally more than $3 billion. The company is making no comment on the report.

The obvious potential purchaser is Best Buy Co. (BBY), the largest player in the electronics stores sector with a market cap of more than $17 billion. Best Buy just reported strong earnings this week, and has plenty of free cash. Of the other players in that sector, only Gamestop Corp. (GME) has a higher market cap than RadioShack’s nearly $3 billion, and Gamestop is in no position to make a move like buying a major rival. If anything, Gamestop itself may be bought out.

Best Buy just doesn’t appear to be ready to make a move like this, though it may be tempting for the company to think about it. It’s quarterly report was better than expected, but there were still some weak spots like its nearly 20% growth in inventories.

Another consideration for Best Buy is that it already carries more than a billion dollars in long-term debt, and would need to increase that number to pile up enough money to buy RadioShack. Of course it could pay some of the cost in stock, but that probably wouldn’t make current shareholders very happy.

Going outside the box on this rumor is a lot more interesting. For example, RadioShack has installed a total of 562 kiosks throughout the US, with most inside Target Corp. (TGT) and Wal-Mart (WMT) operated Sam’s Club stores. The kiosks are not RadioShack branded primarily sell wireless phones and accessories. The company’s contract with Sam’s Club runs through March 2011, after which Sam’s Club can transition operations of the kiosks to itself.

The 100 kiosks inside Target stores are a test installation that will run through this year, after which RadioShack and Target will decide whether to keep the kiosks open or not. RadioShack ended its kiosk arrangement with SprintNextel (S) in April 2009.

Kiosks alone are not enough to entice large potential buyers like Target or Wal-Mart. What may be an enticement though are the nearly 4,500 RadioShack company-operated stores in the the US. Many of these stores are located in major metropolitan areas that have so far been unwilling or unable to allow Target or Wal-Mart to build the gigantic stores for which both companies are so famous.

RadioShack stores are much smaller than the giant box stores, of course, but they could offer Target or Wal-Mart a location from which to sell electronics or other products to the literally hundreds of thousands of people a day who never see one of the big stores. It’s a terrific opportunity and not all that expensive at RadioShack’s potential valuation.

Wal-Mart has nearly $8 billion in cash and Target is holding more than $2 billion. Either one looks like a better bet to bid for RadioShack than does Best Buy.

Tell us what you think here.

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