RadioShack’s (RSH) stock dipped below a dollar p/sh Friday for the first time in its history, as the beleaguered U.S. electronics chain continues to fight to save its business from bankruptcy.
Early this month the company, whose market cap is now $9.8 million, compared with $9.87 billion for rival Best Buy (BBY), reported disappointing quarterly results that prompted some Wall Street analysts to suggest that the retailer is on the “threshold” of bankruptcy. Last week, B. Riley’s Scott Tighman slashed his RSH PT to $0 from $1, maintained a sell rating on the stock and said there is “no recovery in sight.”
The $1 mark is more than just a psychological barrier, as the one-time electronics retail giant — whose stock peaked at more than $75 in the late 1990s — now faces the prospect of being delisted from the New York Stock Exchange. As USA Today’s Matt Kranz noted in a 2009 column, [via Mashable’s Todd Wasserman] “Falling below a $1 a share is normally the beginning of the end for many stocks.”
RadioShack’s pps deterioration has picked up steam in recent weeks, falling 40% since the company’s earnings report on June 10. The ticker is now down more than 72% on a y/y basis and off about 97% from its all-time high.