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Staples, Inc. Message Board

  • michaelckennedy2011 michaelckennedy2011 Apr 23, 2014 5:57 AM Flag

    to much debt-this will be a circuit city in 16-18 months

    to much debt-this will be a circuit city in 16-18 months, they are borrowing money to make payroll. Look at the balance sheet. It is a mess and not alot of cash on hand like they used to. I see bk in the long term and empty stores every where, just like circuit city and the business to business end is doing terbbile.

    Sentiment: Strong Sell

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    • I have no idea what your talking about. The company may have issues and challenges that it faces, but to say the company does not have money and is moving toward bankruptcy within 16-18 months would be a huge strech. Factor that in with the fact that business to business is actually flat lining to slightly increasing overall top line revenue. Margin pressures have largely stabilized as Amazon moves to profitability.

      Sentiment: Hold

    • It is difficult to respond to an uniformed post like this. However, in some courts, I believe you might be guilty of fraud. There is about $1B in debt. Cash flow is $1B. Free cash flow is just under $1B. There is little chance of bankruptcy in the next 5 years let alone the next 18 months. Please stop posting non-factual items. Tangible book value is $2.5B. There will be write-offs of goodwill to come, but fact is this is a solid balance sheet combined with solid cash flow.

      Also, I just read a post about someone using Amazon because there's no sales tax (assumed they operate in a state with sales/use tax). If you don't pay the sales tax then you should pay the use tax. Really, why not carry a sign that says 'I evade taxes and I dare you to catch me'.

      Oh wait, you can just move and renounce your citizenship.

      • 2 Replies to flwsinvestor
      • Not to mention that Staples is the #3 online seller behind Amazon and Apple. Fortunately for the poster nobody takes anything posted on these boards as serious advice. If they can't be bothered to learn how to read a balance sheet, they really have no business investing in individual stocks.

      • The CEO stated that SPLS will finish the year , 2014,with $600 million in free cashflow. That matches approximately what they did last year, when they bought back shares and increased the dividend (mind you , they used $1 billion in cash they had on hand to reduce debt by $800 something million and the rest for the buyback )

    • High debt? The total debt to equity ratio is 0.12 lower than the industry average. The gross margin is 24%, Net margin is 3%. The Price is almost equal to Book value with a Price to Book ratio at 1.40. While it may not be thriving, it will almost certainly survive. You compare it to Circuit City but these are to very different companies. You say Circuit City, I say Rite Aid, which was struggling since 2000, it is not thriving but its price exploded recently because it beat expectations by Shorts. Also Staples was able to survive the Great Recession, it could probably survive for a few years.

      Sentiment: Buy

    • I think it will happen in more like 16-18 hours.

 
SPLS
15.550.00(0.00%)Jul 2 4:00 PMEDT