Do you think RadioShack stock will rise dramatcally now that Julian Day is CEO?

Question

I heard that with help of the new CEO RadioShack stock will go up to the $30's and maybe like $50's, much like Sears did. What do you think?

Answer 1

I have not been watching this stock. But, hear a little in the news. Radio Shack laid off about 700 people around the end of September. Normally this a sign a company is hurting and is restructuring. So, with a more viable leader it could in time make a substantial turn. Look at K-Mart they were hurting bad and sock was down around $6. Over the course of closing "Dead-weight" Stores and an aggressive advertising campaign they Merged with Sears, in fact I think they bought Sears. A friend had Stock in K-Mart and at the time I checked it, it was at around $100. This took about 4-5 years to happen maybe a little longer. Many times when a company down is actually a good time to buy. Ford Motor Company may be a good one to watch.
How I approach this; I use a utility company, they were restructuring and asking people to take voluntary early retirement as opposed to lay offs. The stock was dropping and when it was $8 I started buying what I could every month. It went as low as $4 and I kept buying until it returned to $8. Once it had rebound to $8 I stopped buying and waited. In about a year I sold at $20. It was not a substantial gain, but, I was able to accumulate a lot of shares during my Buy "Window". Now I am doing this with Ford. So, we are never sure what will happen, but, I feel if one has a good company in a hurting situation, we can buy at a certain price range then as it recover stop and wait. It may not happen in a month. You may have to wait a year maybe more, but, by setting a range in which to buy, this slow recovery gives a person with limited capital time to accumulate a large amount of shares and realize a tidy little profit for a "No Brainer"!