Hedge Fund Trade Of The Week (RSH)

Anthony Scaramucci of SkyBridge Capital is on CNBC's Fast Money with his hedge fund trade of the week. The trade is RadioShack RSH for a variety of reasons. The stock is trading at $14.67, and Scaramucci believes it could be worth as much as $25 in a takeout scenario. Radioshack has been the subject of many LBO rumors, but so far, none of those rumors have come true. The company has a $1.5 billion market cap, and Scaramucci likes that big hedge funds like Citadel and Tiger own the name. 95% of America lives within 5 miles of a Radioshack. People believe that because it does have the Verizon iPhone, only the AT&T iPhone, that it will experience weakening phone sales. Scaramucci said as long as the market is hot for Droid products, Radioshack should do well. It's trading at 3.6 EBITDA, and around 8 times earnings. It has a 17.5% return on investment, and trades at a 9.6 forward cash flow yield. Scaramucci thinks its worth around $22, and around $25 in a takeout.