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Hedge Fund Trade Of The Week: Radio Shack Update

After revealing his peers were bullish on Radio Shack back in March, Anthony Scaramucci takes a second look at this stock! Should you buy, hold or run for the hills?

As you likely know Radio Shack, “sells mobile devices, accessories and services from leading national brands as well as exclusive private brands in an inviting and easy-to-shop environment,” according to its website.

Check out some of the company’s stats:

RadioShack (RSH)
Sector: Services
Market Cap: $1.6 billion
Industry: Retail technology
Based in; Fort Worth, TX
52-week high: $16.25
52-week low: $12.28

When asked for a price target, at the time, Scaramucci said the stock could trade to $22. (Click here to check out everything Scaramucci said on March 3rd.)

On Tuesday the trade took a turn - with shares popping almost 20% after the company said it plans to partner with Verizon and drop T-Mobile products from its stores.

According to the WSJ, under a new deal, RadioShack will offer prepaid and postpaid Verizon Wireless products and services in more than 4,300 RadioShack company-operated stores starting Sept. 15. It will stop carrying T-Mobile products a day earlier.

Considering shares have marched lower since Scaramucci first made the call but then popped on Tuesday, should you buy, hold or run for the hills?

Scaramucci thinks investors should remain long. He says, “Radio Shack remains a value stock It’s still cheap.” Again Scaramucci tells the desk he thinks it will trade into the mid-20’s.

And he also thinks it’s a potential takeover target. “There’s a Radio Shack within 6 miles of every person in America,” he says. Someone may find that very attractive.

Click here to check out other Hedge Fund Trade Of The Week posts

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.



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Trader disclosure: On July 26th 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Nathan is short (AAPL) puts; Nathan owns (BAC) calls; Nathan owns S&P 500 puts; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Finerman's Firm And Finerman Own (AAPL); Finerman's Firm owns (BAC) leaps and Finerman Owns (BAC); Finerman's Firm owns (JPM) leaps and Finerman Owns (JPM); Finerman’s Firm And Finerman own (CMI) puts; Finerman’s Firm owns (CLX); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Karabell owns (AAPL); Karabell owns (GOOG); Karabell owns (GS); Terranova owns (VRTS); Terranova owns (IBM); Terranova owns (FCX) ; Terranova owns (CVI); Terranova owns (XOM); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (AAPL); Terranova owns (F)

For Anthony Scaramucci
One of 8 national finance chairs for Mitt Romney campaign
Held a fundraiser for Mitt Romney
Has contributed to the Romney campaign

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BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.
Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Amazon within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Amazon.





CNBC.com with wires.