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Two Ways: Radio Shack Electrifies?


Strengthen your portfolio in good times and bad.

RadioShack (RSH) reported a better-than-expected first quarter as consumers sought more flat-panel televisions and digital-converter boxes. The consumer-electronics retailer said net income rose 11%, to $43.1 million, or $0.34 per share, beating analysts' estimates by $0.12. Revenues increased 5.6% on a year-over-year basis, to $1 billion, above consensus estimates of $0.94 billion.

According to the Wall Street Journal, same-store sales rose 5.6%; the increase would have been 6.2%, absent an extra day a year earlier. Online sales rose 28%, but gross margins fell from 47.4% to 46.7%.

From the Bull Pen: The retail sector has been acting well, but bulls can wait for better entry in most stocks. Walgreen (WAG) may be an opportunity on a pullback towards $28.50.

From the Bear Cave: RadioShack has major headwinds against it - especially if you believe consumer spending hasn't reached its ultimate nadir. On a technical basis, see RSH fill in its downside gap. Bears can play the short side, with an entry at $11-11.50-ish. Note major resistance at 11.50. A buy stop can be set above that level.

Quick Check Around the World

Asian trading closed with the Hang Seng 2.26%, Nikkei 1.37%, India 2.93%, Shanghai 0.11% and Taiwan -0.18%.

Glancing towards Europe, we see the CAC 0.19%, DAX -0.46%, FTSE 0.41%

As of 8:15 AM EST, S&P Futures are trading +8 to 844.00, and Nasdaq futures are +13 to 1342.00.

A Look at Commodities

Over in commodities, crude oil is trading +0.85 to 49.70 while gold is unch at 892.50 this morning. Silver is +0.060 to 12.370 and copper +2.75 to 208.70.

The dollar index is -0.2250 to 86.2600.

On the Radar


08:30 Initial Jobless Claims
08:30 Existing Home Sales

Click here for the full trading radar.

Thirsty Thursday! Join us at Turtle Bay after the closing bell! Good luck!

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
No positions in stocks mentioned.

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