RadioShack's Earnings Just Exposed How Greedy Investors Have Become

Last night, old-time electronics retailer Radio Shack (RSH) reported its fourth-quarter earnings and they were very strong. Profits jumped 26% thanks to an increased demand for wireless products and services.

The company earned $75.7 million, up from $60.1 million compared to last year.

It’s fantastic news, especially for an old player like Radio Shack. But there’s just one problem: its stock is currently down 6.16% to $19.36 a share, making it the second biggest loser in the S&P 500 today.

Why are investors shunning Radio Shack?

Well, the market is down as a whole, but that can’t be all of it.

What seems likely is that investors have become uber-greedy, and even strong earnings are a reason to sell.

RSH Chart Feb23

Photo: FinViz

Traders clearly think that Radio Shack has enjoyed its bull run for too long now. Since June of 2009, the stock has doubled in value and has “double topped,” a technical analysis term that indicates a major sell off is about to occur after an extended uptrend. Keep in mind: this is Radio Shack. Who do you know that shops at a Radio Shack? No one I know goes there.

It will be interesting to see if RSH can hold above $20 a share for much longer.

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