RadioShack CEO Quits Amid Resume Probe
Just days after we told readers to dump RadioShack (prior to Friday's pathetic 4Q report, which hit the stock 8% to the downside), the company's CEO calls it quits.On Monday evening, RadioShack (RSH) announced that CEO David Edmondson was leaving so "new leadership to step forward so that our turnaround plan has the best possible chance to succeed."
Last week Edmondson admitted embellishing his resume after the college he claimed to have received two bachelor's degrees from told a major newspaper that he never graduated.
This company is pitiful, and we can't wait to see the stock take a beating tomorrow morning.
On Friday, we lambasted the stock:
Here's the consolatory news: Edmondson's severance package could be worth around $1.5 million, with the cash portion of the package valued at less than $1 million. That payout will be "considerably less" than the severance terms RadioShack had agreed upon when Edmondson signed on as CEO.... the bottom line is that the majority of RadioShack's businesses are watching their revenue crumble. RadioShack is increasingly depending on one revenue path. In the home electronics segment, that's a recipe for disaster, and the stock price has certainly reflected it.
Current CEO Dave Edmondson hasn't helped one bit. Since he took over last year, RSH's earnings have tumbled, profit margins have dipped, and shares have taken a 17% haircut -- very impressive, Dave. For the love of God, someone please put this has-been out of its misery.
The adage rings true: quitters never win.
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