Professor Elam

I mentioned in class and on a previous post that Radio Shack shares were 20% of their 2000 high.  After jumping up from 15 to 20, shares fell again on a third quarter loss announcement.  However what is happening there appears to be the classic formula for straightening things up and out.  Read this news release about James Gooch.  Note that Julian Day the new CEO has worked with Gooch before.  This would be good thinking and planning on Day’s part, he is starting to assemble his own team loyal to him, and starting at the top with the CFO. Read Gooch’s background, a fine track record to becoming a CFO for a Fortune 500 firm.  So Day has written off possible losses in a big bath and started assembling his own admin team.  I would guess that RSH stock will make a higher low above $16. By the way, the stock is making what would technically be called a reverse head and shoulders reversal pattern.  I will demonstrate this in class.

DLE