I doubt that. I dumped all my shares and I work for them. Word here at corporate office is that earnings report is terrible and the books will be cooked again to stop the hemorrhaging. Sales and margins suck. Not to mention, another (even bigger) overcharging/whistle-blower scandal is on the horizon. Hell, due to the merger I just got a promotion and good bump in salary. And yet I feel this ominous sense of doom around here and am interviewing other positions as we speak.
Expect more of the same yo-yo $4.50-$5.50 for the foreseeable future. Companies like this rarely change and mergers like this do not work out the majority of the time. I cannot tell adults what to do with their own money. However, my friendly advice to everyone in ODP would be to cut your losses or take your slight profits now and move on in life and trading. Don't go crying down the road on this board when you have been warned.
ODP has already tested that area for the last 5 weeks and is moving out of an oversold position. Take a look at its chart, MACD and RSI. Earnings will be coming soon and I would expect that the OMX merger will add positive earnings to the report. The cost cutting has begun and inventory reduction at the stores being closed will begin to help the bottom line,
Sentiment: Strong Buy
The only thing the volume suggests is that there are plenty of people out there making money day-trading this thing.
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The volume since the beginning of the year suggests that there is plenty of upside in ODP. However, in the short term, look for a retest of the 4.60-4.70 range, especially if earnings disappoint (but this would present a buying opportunity).
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On another note: If projected income isn't just some pipe dream, and if Staples hangs in there, I feel that O.D. will eventually level out at half of Staple's price - whatever that may be.
Unless they come in and say they made a buck a share, the price won't go anywhere. It may bounce around a bit, but that's about all. I am not a fan of management until they show me they can make money. Making money is something O.D. has not been able to do in a long time. We will be bombarded with reasons for this or that (losses) for years to come. Lord, just let it hit my target so I van get the hlle out of this thing. :)
ODP will be better able to compete now. They just picked up Office Max and will get to keep the best of the employees from both. They will close a number of stores no longer needed so they can focus on Staples only. I would say this is much better for Office Depot than for Staples and the activity is showing just that. 3 years after merger complete we should see ODP much improved. Would like to see them consolidate I.T departments and improve their internet sight.