Consumer goods analyst Austin Smith examines the bullish argument for RadioShack (NYS: RSH) . The company is very undervalued, trading at less than book value with a forward P/E ratio of 6.8 and no short-term debt. Moreover, RadioShack is poised to take advantage of the fast-growing mobile industry, all while sporting a 13% yield. With a solid balance sheet and future growth prospects, this company certainly looks like it could be a strong investment down the road. However, for all the things to love about RadioShack, Austin remains a bear.
For one thing, RadioShack's incredible dividend is more the product of share price deterioration than anything else. Investors should stick with high-quality and proven dividend stocks like those outlined in our report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.
At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy and RadioShack. Motley Fool newsletter services recommend Nokia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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