position at the open before the run up! We saw
what happened the other day when we gapped down.... We
ran right back up. We are not going any lower and any
dips whatsoever will be met with buying, much buying.
Remember Esoteric, you can't keep an 800 lb. gorilla down
for long. Cover and move on to the next stock as it's
all upside from here.
Listen to the Pro's not the shorts. Esoteric34 is
clearly a short trying to bash the 8000 lb. Gorilla of
the industry. The below link contains Analysts
ratings on the stock. In summary, there are 23, yes
esoteric, 23 analysts following the stock. 12 of them have
STRONG buy ratings, 8 have buy ratings and only 3 have
hold ratings on the stock. There are NO SELL ratings
out there. It looks like you esoteric, are the only
one placing a sell rating on this stock. Too bad you
didn't make the list of accredited firms making the
recommendations. Will you be covering at the
1. Analysts earnings expectations are in many
cases just a construction to justify the current price,
and their price targets. It is funny to see earnings
estimates cut when the
stock price falls(but no
important news other than the drop
in market price of
the stock occurs).
2. The future is not the past.
Things change. Remember how great
many analysts felt
the future would be for Iomega, Read
CompUSA, etc. just a few years ago?
3. PEG ratios are
nonsense. Growth rates can change quite
4.Staples came in with an anemic comp sales growth of
only 9%, which is extremely low for a company whose
stock trades at such lofty valuations.
defined business plan? LOL!
6. Not by a wide margin.
An any event, this is not terribly meaningful
Buy Staples stock here if you like. Just be ready to
punished for your mistake. Low priced
internet vendors are already hampering Staples sales
growth inoffice machines,
and this trend will only
continue to accelerate.
into Staples sales of office
� After meeting with management
yesterday, we came away with three potential catalysts for
� First, solid new store openings
in �saturated� markets like Phoenix and Atlanta show
that Staples� executional lead continues to
� Second, Staples is incorporating the web into its
stores with an aggressive push toward special orders.
Keep in mind, special orders already account for 5-10%
of sales at some retailers like Home Depot.
Third, Staples has recently embarked on a cross-selling
binge. By better analyzing shopping carts, Staples is
vastly improving attachment rates in as many as 25
areas. That has very positive implications for sales in
H2 and beyond.
� Reiterate Buy rating and $43
price target based on a P/E of 45x FY2K EPS estimate of
$0.90. Industry concerns and
price weakness may have
created one of the best entry points in a long time.
higher paper prices and slower computer related
sales refered to in ODP release. Also, ODP expects to
hold fire sale on unsold items in stores being closed
down. I guess analyst who expressed concern that sector
was over-stored was onto something. I'm afraid we're
headed for the teens on SPLS. I'll re-evaluate there
next six months. SPLS is the sector leader and
the class act that unfortunately has a nosebleed
valuation in an out of favor sector. When the sector
settles out (bases), SPLS will lead the charge. In the
meantime, I am neither long nor short.