Dallas, Texas 08/19/2014 (FINANCIALSTRENDS) – RadioShack Corporation (NYSE:RSH) is yet again in the news. The electronic retailer continues to be marked for lack of growth in the coming quarters, with analysts UBS Micheal Lasser calling the turnaround of RSH as most doubtful. He ascribed the reasons for the likely failure in the future on the lack of ‘financial capabilities’ will not allow the company much leverage for a turn around.
Further, the optimism with which the company started out to reform itself appears to have lost weight due to lack of finances. Besides the innovation factor too is limited or dimmed because of the same financial viability factor.
RadioShack Corporation (NYSE:RSH), Lasser noted was travelling a path of which was riddled with loopholes he claimed. The current approach was akin to throwing the company against a strong wall and expecting that the company will somehow manage to stick itself to it and last out the current dangers.
Earlier, in June, other analysts such as Moody’s noted that the company will run into further money crunches, at the most by November of 2015. Therefore, the company will continue to be in more trouble unless new funds are poured into the company. Again another point on which the analyst disregarded was thus, “Barring a cash infusion, RadioShack Corporation (NYSE:RSH) will not have much of a cash cushion to draw upon as it scrambles to remain relevant in the increasingly competitive mobile phone and consumer electronics business.”
RSH Continues To Skid On Investor Sentiment
It was found that RSH continued to lose out on investor interest, as concerns of the high debt as well as drop in cash flow has ensured the investors remain away. As the company is not able to borrow more, it will lead to the last lap run for this once-popular retailer suggest analysts