A gloomy scenario for you to consider:
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
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
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
Thanks for all the help!
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
(IMO, and nothing personal)
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
high p/e and it like the stock price is
filled with helium, Go Staples!!
>>Have you ever noticed the lack of posts
The reason is that most investors are
not worried enough to spend
wasting their time analyzing the "why" and "why
nots...It seems SPLS stockholders are sleeping quite well
night and therefore have no need to either make
waves or comments!" <<
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
Here's one that cracked just recently:
Read the old complacent posts there for your wake-up
SPLS' multiple is going where ODP's is. And, that takes
the stock down into the 'teens.
Have you ever noticed the lack of posts for
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!
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.