SPLS stock has been dead money for the past 22 months. Buy at 22.50 sell at 23.25. Short at 23.25, but it back at 22.50. This trading range is typical for a mature stock in a rather dull industry. Beating the street by a nickle and raising 2006 guidance is the only way this stock sees 30.
He factored it in, obviously. This stock has been dead for way too long. What will the top brass come up with to increase the stock price that doesn't have to do with reducing pay for employees and reducing labor costs in the stores? Stores are already understaffed and breaks have been cut back-anyone remember the 40 hr work week? Staples seems to have forgotten. Hour long lunch breaks for an 8 hour day? Not at Staples.
There has to be something for the CEO and his minions to come up with other than pushing employees to the brink and cutting expenses, its been done to death. What else do they do with their time?