THE BIG PICTURE: Electronics retailers have been suffering from tough competition, as more consumers buy electronics from online merchants such as Amazon.com and discounters expand their own electronics offerings. RadioShack said last month that weak demand for mobile phones and phone plans pressured its fourth-quarter results.
THE ANALYSIS: Fassler said in a client note that wireless is a slowing category where RadioShack is losing market power. The analyst also feels that the company has a limited opportunity to make cost cuts, as it made sharp reductions in recent years.
Fassler said he believes a turnaround "will be exceptionally difficult to implement and correspondingly apply a low probability of success." The analyst also feels that its balance sheet does not allow for a leveraged buyout at current earnings.
SHARE ACTION: Shares of RadioShack declined 9 cents, or 2.6 percent, to $3.39 in morning trading. For the year to date, the stock is up 64 percent.