In the latest sign that time is running out for RadioShack, the consumer electronics company became a penny stock this morning. Shares of the beleaguered company dipped below the $1 threshold for the first time ever shortly after the opening bell and tumbled some 10 percent over the next few hours. They were trading around $0.92 as of early afternoon.
The future has looked dire for RadioShack for a while. Technology moves fast, and shoppers long ago began looking elsewhere to satisfy their electronic needs. Earlier this month, RadioShack issued a truly ugly earnings report in which it posted a $98.3 million loss and said sales at stores open at least one year fell 14 percent. A day after those figures were released, B. Riley analyst Scott Tighman slashed his price target on the stock to $0 from $1 and said there was "no recovery in sight."
Shares of RadioShack have plummeted more than 60 percent since the start of 2014 alone. The company initially intended to cut costs by shuttering roughly a quarter of its 4,300 stores but ditched the plan after failing to secure support from certain lenders. Without their backing, it can close a maximum of 200 locations this year, which it intends to do.