Its interesting that they had pre-knowledge of what was to come. Still, I agree, they said "buy" all quarter long. No doubt they were offloading shares the whole time and then probably got short and finally the downgrade.
Every Staples near me in Brooklyn is crazy busy frm July through Sept for school supplies, and arond Black friday and through Dec. Lines out the door. I think the model is great but they may have oversaturated some neighborhoods with stores and need to close some. their prices are relatively very good and typically beat Amazon and you can return without hassle, etc.
They need some sizzle. Maybe buy RSH and open smaller stores with online ordering. Some minor tweaking and they are golden again.
I just put in a search for copy paper, and Staples was the first to be listed, just to cite one example. I use Staples often for my business, and they have fast shipping with competitive pricing.
Sentiment: Strong Buy
My last 3 trips to Staples: Office chair, no one to check to see if it was in stock. Printer carts: No one to help me cross reference for the type I needed. Printer/Scanner: Again, no one to assist with questions I had about my PC compatibility with the model I was looking at. But, there was no problem having the counters manned with associates trying to push off rewards cards on customers. What the hell does a reward card for customers when you don't bother to assist your customers purchasing your merch.? You are correct sir, they got what they deserve.
How about #$%$ service when you visit? You'd think this would be one area that they would focus on and make a differentiating factor .
Staples at least knows where the business is, and that's the internet. Closing small stores is nothing but a wise move. With their latest advertising bliss, it just shows they are growing, not shrinking
Sentiment: Strong Buy
They NEVER EVER DO...wait till it gets to $25 then they will buy tons....never fails....no company buys its stock when its cheap
A little OT, but if Staples downsized its stores to include only a copy/digital printing center and an inventory of paper along with someone to help ordering other items online they might be able to maintain a presence in communities.
I agree with you, but I think the dividend will be cut in the near future, since it is not sustainable and they will need the money for the hard transition to more than 50% online. I don't see them as having any sort of competitive advantage, other than maybe some large accounts which they will have to work hard to keep. All else in their business model is done better and cheaper by AMZN and the likes.
Anyone seen the list of stores to be closed yet?
I live in a small town where we have one and could never figure out how in the heck they could see enough support for one to be here!
Do you really think the 4.2% dividend is sustainable long term? If so, I have a bridge called "brooklyn" bridge I want to sell you