I am pretty sure that Staples is making more money than ODP is losing.
Long term sure this could be a disaster for Staples if they merge. But short term there is money to be made and IMO the only thing that is going to stop this merger are the Feds.
"I would be interested in knowing what their hopeful desired target is here. "
Their "desired target" is to clean up when they talk the ignorant shareholders into a merger. The shareholders are told how great things will be, blah, blah, blah. Not true. The only thing that places like Starboard is successful at is making money when they bully companies into doing what they want.
If Staples knuckles under and buys/or merges with O.D., it will be the beginning of the end for Staples, and the shareholders will lose their dividends.
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I don't see how Starboard expects to "unlock value" with a ODP and SPLS meger.
There are so many other options to trade stocks and make profits, this one looks like so much work and for what gain? I would be interested in knowing what their hopeful desired target is here.
I am also not sold on the Darden war they went on. Ok, so Red Lobster is gone but earning at Nov 2014 were at a loss, but the stock is up, so they won that right? But wont the stock price be dropping soon enough if cash flow does not improve? I really don't get there strategy or their expectation here.
I can appreciate shareholder activism, but I do think Starboard takes this a bit too far, but since it is there money there are playing with, I do respect their right to do this.
Just don't tell them about little Mikey's lemonade stand on the corner, they might just make a play to take that over also in a hostile proxy fight.
Why would you be a fool to hold a company that is actually profitable? I figure that it is better to have disappointing profits than no profits at all. Maybe you should go and buy yourself some Office Depot stock. When was the last time THAT company showed black on the bottom line?
that's why i sold close to $18 - too risky to hold. the stock was priced for a merger. if it does not happen, it will continue to readjust downward. personally, i don't understand why SPLS mgmt does not want to try? They may get rejected by FTC. So what. Their excuse is ODP has indigestion. Well, if SPLS mgmt is good they will fix it and reap the rewards. I guess i understand on some level the attitude that what is the rush. On the other hand, competition does not stand still. I'm with Starboard on this one. i think ultimately they will prevail. so i'm watching and if spls stock gets cheap enough - I'm will buy again....
I don't understand WHY Staples shareholders would WANT to merge with Office Depot. As soon as they do, they will lose their dividend - just as O.M. shareholders have. O.D. doesn't pay dividends. The only people who are getting rich from these ridiculous deals are the folks at Starboard and the management at O.D.
Look at it this way: Office Max - Made Money, O.D. consistently lost money. They merge. Now you have a much BIGGER company that is losing money.
Staples - Makes money. , O.D. STILL losing money. Put them together and you will have a HUGE company losing money.
Office Depot is toxic. The shareholders of Staples better vote "NO" if a merger deal ever come up.
Releases letter to Staples for public consumption. As I said previously, this merger is not happening anytime soon and speculation has fueled a premium in Staples' stock price.
Even Starboard acknowledges that Staples' stock price is inflated based on the intrinsic value of a stand alone company. I would much rather own Best Buy at this level rather than Staples.
Now they are looking into buying a cleaning products and services company called Swisher for a premium !!
Doesn't that tell you something? It means that the latest quarterly revenues and profits will be disappointing, so, obviously, he didn't want to add insult to injury.
This stock is overextended and will be in free fall soon. You would be a fool not to sell at these levels.
I am currently searching for information about stocks with sharply decreased short seller rates.
I found Staples as a good example. Why we have not seen a fast Short Squeeze ?
They are probably in cahoots with Starboard to keep it propped up.
Volume is anemic and there is no legitimate news for this stock to be up 40% within a few months.
If anything, retail sales are discouraging to say the least as evidenced by today's report.
Once thelatest numbers come out for the quarter, you will know what real pain feels like.