Based on other retailer data, and using Office Depot as a proxy, this will drop massively tomorrow.
"Office Depot also faces broader industry issues such as heightened competition from online sellers and a shift in the use of office technology that has put pressure on sales."
Be smart and preserve your cash.
No I don't have a newsletter, but if you like you can click my yahoo handle to see what I am interested in, i.e. shorted ZQK tonight, should be a bloodbath tomorrow, but we shall see.
Staples is not Office Depot. Staples is huge in online sales. I have no idea why buying online is all the rage. Better to hold what you are looking for - see if it is indeed a good item, then have it bought and out the door than to blindly buy online, in most cases for same or higher price, then wait for the item, then if incorrect have to return it by mail --- more effort. There are some items which are less expensive bought online -- this is true. On the balance, I like to buy in the store. I will hold the stock and expect it to gain back a couple to three bucks it has lost recently.
"Better to hold what you are looking for - see if it is indeed a good item, then have it bought and out the door than to blindly buy online"
This is what online reviews are for. Reviews from many verified buyers serve as aggregate data to make informed purchases. You won't likely be able to open up an item in store to closely inspect it. Even if you could, I'd still say aggregate data from a number of verified buyers would still be a better measure of product quality since previous buyers could comment on the product after using it for an extended time frame.
I covered today at nearly a 2 point profit. This stock has a tendency to bounce after bad news, and the market is just crazy full with gamblers chasing returns, so I won't be surprised if it goes up tomorrow.
Good luck to all!
Good call!... The fact that this market has been roaring over the last few quarters, and SPLS continued to trend back down to around its Great-Recession lows of '08/'09 in the low teens showed that neither analysts nor management was willing to put their money behind the stock. Furthermore, based on Managements' own forecasts for the next quarter, this stock should stay in the low teens/high single digits until the summer or even further beyond. If the whole year continues on like this, they could end up earning just over their annual dividend payout in profits.
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.
Amazon will bury them all. No one uses office supplies like they used to. Large companies go paperless and supplyless - I have worked for many. You should know that.
Good luck to you - you may be right to have gone long. It does look oversold, but so do most good shorts. We shall see who ends up making money over the next month or so.