RadioShack Shares Have Been On An Absolute Tear (RSH)
<img src="http://static2.businessinsider.com/image/53ff69296bb3f78c0d6391ed-771-578/radioshack-cycle-1.jpg" alt="RadioShack Cycle" style="color: #000000; font-size: 15px;" border="0">
It's been a huge week for shares of RadioShack.
Just this week, shares of RadioShack have more than doubled, bringing the stock back above a dollar after it officially became a penny stock following a terrible first quarter report back in June.
Near noon on Thursday, shares of the electronics retailer were up more than 35% to $1.49 per share.
<span style="font-size: 15px; line-height: 1.5em;">This chart from Yahoo Finance shows the meteoric rise in RadioShack in just the last few days.</span>
<span style="font-size: 15px; line-height: 1.5em;"><img src="http://static4.businessinsider.com/image/53ff6654ecad04730850b796-800-325/rsh-aug-28.png" alt="RSH Aug 28" border="0">
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The huge rise in shares follows a report from Bloomberg's Jodi Xu and Lauren Coleman-Lochner earlier this week that said hedge fund Standard General is in talks with RadioShack about ways to raise cash to prevent bankruptcy.
Xu and Coleman-Lochner reported that Standard General increased its take in RadioShack to nearly 10% of the company's shares, up from 7% as of June 30.
<span>In addition to the sharp rally in common shares of RadioShack, Xu and Coleman-Lochner also noted that RadioShack debt has rallied in this week.</span>
<span>This chart from FINRA shows that RadioShack bonds, which carry a 6.75% coupon and mature in 2019, are trading at 44 cents on the dollar, up from less than 35 cents just two weeks ago.</span>
<span><img src="http://static3.businessinsider.com/image/53ff66f9eab8eab63fcb3056-755-600/rsh-debt.png" alt="RSH debt" border="0">
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<span>RadioShack, however, still faces huge challenges as it tries to close and remodel stores in an effort to shore up its finances.</span>
A July 29 report from Moody's said, "<span>RadioShack's deteriorating liquidity gives the company a limited window for executing a turnaround in sales and earnings." </span>
<span>And as BI's Ashley Lutz reported earlier this month, RadioShack's turnaround efforts might not be enough to save the business. </span>
<span>So, a huge week for RadioShack and investors who found themselves on the right side of this trade, but a potentially empty rally over the long-term. </span>
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