Tomahawk, WI 09/15/2014 (Basicsmedia) – RadioShack Corporation (NYSE:RSH) has for some time been trading on the red line having reported increased losses in the recent quarter earnings. During an interview on CNBC, SierraConsteallation Partners Founder and CEO, Larry Perkins, reiterated that there is still some value in Radio Shack that could attract some third party financing.
Perkins believes isolation of the good and bad in the company could give rise to an opportunity that could be attractive to investors.
“I think the obvious thing is a lot of people know about RadioShack Corporation (NYSE:RSH) you talk about Americans, and they have heard about the brand and, as a result, there is value there. I think someone will come in and pick the good pieces, but I don’t think it’s going to be where it is right now,” said Mr. Perkins.
RadioShack Corporation (NYSE:RSH) valuation problems are’ compounded by the fact that it does not own most of the stores where it operates from. Focusing on entities that are working at the moment, be it some stores or online platform remains one of the options that Perkins believes could help offset some of the company’s ongoing problems.
Perkins believes that Best Buy and Amazon will not be an obvious beneficiary should RadioShack Corporation (NYSE:RSH) go-down because it is not an outright competitor or a threat to their businesses. The only people who stand to benefit from RadioShack Corporation (NYSE:RSH) filing for Bankruptcy according to Perkins are other retailers who can tap into the company’s employees or find land leases valuable.
“I think the fact that matters is that the major competitors Best Buy Co Inc. (NYSE:BBY) frankly Amazon.com, Inc. (NASDAQ:AMZN) they are not really wringing their hands about what is wrong with Radio Shack right now. I think they have already beaten them.”
CEO, Joseph C. Magnacca, has already admitted that the company needs additional working capital in order to work on a turnaround plan that he believes could turn things around.
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