Those who have the courage to buy at these levels
($26.00) will be well-rewarded.
The company's
stock price has been overly discounted, beyond reason,
and there is no justification for it. Yes, I've heard
the P/E arguments, but disagree. The higher P/E is
easily off-set by the company's plans to expand
(wisely), and their excellent prospects for
better-than-average earning's increases.
This is a relatively
non-volatile stock (except for the last few days), and can be
compared with other stalwarts such as The Home Depot,
Wal-Mart, and Walgreens. Peter Lynch just loves the stock,
which is another tremendous plus- now, we know he does
his homework. And the reason that there is a
disparate gap in the P/E's of the bigger office-supply
stores is because of the fact that Staples will show a
much more powerful ROE in the future.
There
advertising is tremendously effective, and they have recently
associated themselves with a stadium in the Los Angeles
area.
I sleep very well at night holding
Staples, and see no reason to be concerned about
inter/intra-day movement. However, I must admit that during the
last few days, it has been rather exciting to watch it
bounce around the board. Somebody obviously wanted the
stock real bad yesterday, as it jumped 2 + points when
the market retreated 200 + points. Now, that was
impressive!