RadioShack Corp. (NYSE: RSH) traded up as much as 14% Tuesday morning on no particular good news. In fact the only news we have seen on the company is a bit from CNBC in which an analyst from BB&T Capital Markets suggested that the company most likely will have to file for bankruptcy protection after the holidays.
His argument is pretty solid. The electronics gear store having the best holiday season is Best Buy Co. Inc. (NYSE: BBY), and the gear that Best Buy is selling the most of Ultra HD TVs, something that RadioShack does not offer. Another top seller is video games, something else that RadioShack does not sell.
Even if a consumer wants to buy something that RadioShack sells, BB&T’s analyst points out that most consumers would be wary of picking a store that may not be in business to handle support and return issues.
There doesn’t appear to be any insider buying, nor are there any new SEC filings. So what gives? Traders hitting the eggnog a little early? Stocking stuffers? Who knows.
RadioShack’s shares traded up more than 11% about half an hour before noon on Tuesday, at $0.39 a share in a 52-week range of $$0.30 to $2.79.