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Analyst Sees 5 Reasons Amazon (AMZN) Should Buy RadioShack (RSH)

September 15, 2014 7:08 AM EDT
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SunTrust Robinson Humphrey analyst Robert Peck lists 5 reasons Amazon (NASDAQ: AMZN) should buy RadioShack (NYSE: RSH).

Peck comments, "As we’ve been thinking about the expansion of eCommerce into local, we have also noticed the decline of several local chains. This can be for a variety of reason, including: bad locations, over build out of stores, inability to keep up with the changing consumer demands, and poor inventory. The most recent struggling chain is RadioShack. In fact, its CEO, Joe Magnacca, said last week that the company may have to seek bankruptcy and try to reorganize the company and its 4,000+ locations."

He added, "We think Amazon should consider buying some of the locations in bankruptcy for several reasons: 1) No tax law issues; 2) Amazon is already focused on local; 3) Showcase Amazon products and services (launch new services); 4) Improve pickup and distribution; 5) Broader ecosystem lift."



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