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Staples, Inc. Message Board

  • paulmars paulmars Oct 14, 1998 8:25 PM Flag

    Look out below: SPLS @ $12?

    A gloomy scenario for you to consider:

    If
    Staples' earnings outlook is infected by the recession
    contagion (ala OMX's recent announcement), and analysts
    then adjust their '99 forecasts to be flattish with
    '98, at, say,
    $.76 (down from the current
    consensus of $.99) -- SPLS would immediately get a double
    hair-cut :

    The p/e multiple would shrink to reflect
    the non-growth in earnings- to, say, 16x.


    Thus, $.75 x 16 = $12.

    It could easily
    happen...at anytime. You don't think so? Tell me why. And,
    tell me, where is the upside to offset this downside
    risk?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • What a lousy run store

    • Any Staples people out there? I am currently
      looking at management opportunties with Staples. Can
      anyone offer a bit of advice about the company? What is
      Staples like to work for? How does the company treat its
      people? What are the benefits like? Please drop me a line
      at moby4530@aol.com

      Thanks for all the help!

    • >>Go Staples!!<<

      Someone get
      some pom-poms!

      Hey, IBD is put out by a guy who
      keeps having to close down his failed mutual funds,
      because his CANSLIM method doesn't work in real life!
      (though it shouldn't take a genius to figure out that
      it's was really designed just to sell newspapers to
      the monkeys)

      (IMO, and nothing personal)

    • Hi Zebra,
      I'm puzzled by thelack of posts too,
      but Staples is a long term deal for me unless their
      earnings growth drops perceptibly. Right now they are
      rated the highest by IBD and that's good enough for me.
      Like Dell, HBOC, super minting machines and Mckesson
      is a heavy hitter in earnings, so that to me is the
      driving force behind Staples' price right now. Look at
      Dell's
      high p/e and it like the stock price is
      filled with helium, Go Staples!!
      John

    • >>Have you ever noticed the lack of posts
      for Staples?
      The reason is that most investors are
      not worried enough to spend
      needless energy
      wasting their time analyzing the "why" and "why

      nots...It seems SPLS stockholders are sleeping quite well
      at
      night and therefore have no need to either make
      waves or comments!" <<




      At 34
      times earnings, you should be tossing and turning, at
      least a little....

      (Your post is almost perfect
      as a contrary indicator of what you should be
      feeling and thinking)

      I can name hundreds of
      stocks where such high p/e complacency cameth before the
      fall.
      Here's one that cracked just recently:
      http://quote.yahoo.com/q?s=sfsk&d=b

      Read the old complacent posts there for your wake-up
      call.

      SPLS' multiple is going where ODP's is. And, that takes
      the stock down into the 'teens.

    • Thanks--end of this test!

    • Have you ever noticed the lack of posts for
      Staples?

      The reason is that most investors are not worried
      enough to spend needless energy wasting their time
      analyzing the "why" and "why nots" as to where this company
      is going. IMHO the less posts the better! It seems
      SPLS stockholders are sleeping quite well at night and
      therefore have no need to either make waves or comments!
      --Sylvestor!

    • has anyone noticed that this copamy has growth of
      over 30% for 17 consecutive quarters!!!!!!!! It
      historically splits at this level, and you people are looking
      for it to go to 12. Why not invest in the german
      army. I hear they are on a hit streak

    • Somehow I'm accused of cheerleading. I just did
      simple math to show why $30 is a fair value price. SPLS
      has been trading at a trailing P/E of around 40-50.
      With SPLS *finally* going after the Southeast, I
      anticipate a lot of growth because of the new market. The
      name is already known because of the national
      advertising campaigns, so there doesn't need to be a huge
      regional branding campaign. The $1 earnings forward
      doesn't include that potential for growth. So keep that
      trailing P/E higher than the PEG=1 (let's give a P/E of
      40, which isn't unreasonable given current P/E) and
      do the calculation for a year from now. 40 x 1
      trailing is $40. 50 x 1 trailing is $50. If they beat
      estimates, which they usually do, you have a higher price.

    • Nice timing! (send me my cut)

      (12 is possible, but 20 is likely)

      Good luck and buy puts.

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