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RadioShack: Turnaround Stock?

After Goldman added Radio Shack to its Conviction Buy list investors are wondering if this unloved stock may be on the brink of a turnaround.

Goldman is bullish, saying the electronics chain stands to benefit from the growing smartphone market.

Considering Radio Shack used to be all about wires, plugs and circuitry, it sounds like a turnaround story if there ever was one. In fact, Goldman raised its price target on Radio Shack by $4 to $25.

Guy Adami agrees. He says valuations are fair and there’s a huge short interest. “This stock looks interesting, here.”

Goldman’s bullish note led the Fast Money traders to speculate, ahead of the show, that other companies may be similarly positioned for their own turnaround.

They include the following:

Netflix

Netflix shares soared last year after the company announced plans to create a much larger movie library online allowing subscribers to tap whatever movie they want whenever they want and watch it on their computers.

Now the question becomes, will people continue to watch movies online, or will the next gadget eclipse this technology?

NCR

The traders as well as JPMorgan analyst Paul Coster turned bullish on this ATM maker, after NCR acquired 1,300 additional DVD kiosks and branded them Blockbuster Express.

The move allows them to compete with Coinstar in the lucrative $1 a night DVD movie rental business.

Motorola

The turnaround story at Motorola stems from the new Droid phone which Time magazine named one of the top ten gadgets of the year. Now the question becomes, is it the Droid really the iPhone killer so many people suggest it could be?

We'll be watching.


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Trader disclosure: On Jan 5th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (BG) Call Spread; Najarian Owns (BP); Najarian Owns (CLF); Najarian Owns (MRVL); Najarian Owns (MS); Terranova Owns British Pound Futures; Terranova Is Short Crude Oil Futures; Terranova Owns (BAC); Terranova Is Short (CMA); Finerman's Firm Owns (CBY); Finerman's Firm Is Short (KFT); Najarian Owns (FCX); Seymour Owns (AAPL), (BAC), (BG), (F), (INTC), (MSFT), (MT), (TSL), (TTM), (VALE)

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