Why is Michael Dell looking to buy RadioShack? DELL RSH

Discussion in 'Stocks' started by PeterEastgate, Jun 12, 2009.

  1. I would agree. As a side note I am noticing how business which previously didn't care are fighting to keep your business. I am going out of town so I went to cancel blockbuster and they won't let you cancel online you have to call and listen to their spiel about why you should stay, really irritating. Then I get called by Comcast pitching the VOIP phone service by an American! Previous solicitations from companies always came from Indians and Philipinos.
     
    #21     Jun 12, 2009
  2. eagle

    eagle

    He might think of expanding RadioShack into the foreign countries as once in its glorious past. But this time will be a bit different because the green field is bigger especially in China and India where people didn't get used in buying on-line, they prefer shopping at the retail store.
     
    #22     Jun 12, 2009
  3. Radio Shack has a solid business model with good seasoned management. It throws out cash consistently. It's one of the few retail/tech to pay a dividend.

    If DELL were to buy it outright at today's price, it would pay off in less than a decade. If DELL closed it's mall kiosks and move that operation into the radioshack stores, the savings from closed kiosk rentals would make this deal pay off is less than 5 years.
     
    #23     Jun 12, 2009
  4. How much do you know about RSH's business? Other than noticing their empty stores and knowing they've been in business for almost a century now, I don't know much about them. Management is obviously doing something right, surviving the Depression and a dozen or so recessions, but is selling a 7801 transistor to a customer who had to have it RIGHT NOW— instead of ordering the part online for a much better price— at a 1000% markup really keeping this company afloat? Or is their $4B+ revenue primarily due to laundering money for a Colombian drug cartel? :D :D
     
    #24     Jun 12, 2009
  5. Avoid DELL. While their computers are fine, should they build it incorrectly or should you need competent tech support, they are the worst of all that I have come across in 20 plus years of buying computers. They will suck hours and hours out of your life as you struggle to climb their various levels of tech support and rectify your problem(s).

    I find it insulting that their computers come with support warrantee but if so inclined, you can purchase a more expensive tech support plan that gives you access to experienced North American techs (their words). Unbelieveable. You think that there's a problem with their outsourcing?
     
    #25     Jun 13, 2009
  6. Best Buy is ran like a whore house. Customer service is awful. Radio Shack could become like Apple's "Apple Stores"

    John
     
    #26     Jun 13, 2009
  7. Their Professional "Gold" support is excellent.
     
    #27     Jun 13, 2009
  8. PeterEastgate is port.
     
    #28     Jun 14, 2009