RadioShack Spurring Turnaround Interest

Date: Wednesday, July 12, 2006
Author: HFN Daily Report

Speculation RadioShack might be in play is not lost on one contrarion.

Hall Financial disclosed its longtime 5.64% RadioShack stake Tuesday as well as its assertion the company is poised for a turnaround.

RadioShack renewed investor interest with the hiring of ex-Sears chief executive Julian Day last week.

The hiring has fueled analyst talk of a potential acquisition by Sears.

"Day played an important leadership role in the resurgence of Kmart," the fund said in its regulatory filing.

Day helped lead Kmart out of bankruptcy in 2003 in a partnership with billionaire fund investor Edward Lampert.

Lampert then spearhead the $12 billion Kmart takeover of Sears in March 2005.

Speculation has Lampert, authorized to spend $3 billion, scheming another dramatic acquisition that would boost Sears stock.

Lampert praised Day as a hardworking businessman when Day left Sears in April.

Hall has a penchant for investing in undervalued businesses with turnaround potential.

The firm bought its stock in RadioShack in February and is supportive of Day.

"Our intention is to actively review and monitor their strategic direction," the Texas firm said in its filing.

Stock in RadioShack jumped 16% on the news of Day's hiring.

Craig Hall founded Hall Financial in 1968. The firm has $1 billion under management.