L/T Buy - S/T STRONG BUY
"We view Staples
as a high-quality, consistent growth story, but its
stock price has unfortunately received the backlash of
the high-profile Office Depot and OfficeMax
disappointments. Much damage has been done to the sector as a
result of the Office Depot disappointment and the
re-emergence of saturation concerns. We believe that, over the
next 4 months as investor sentiment starts to swing
positive again, SPLS shares should be able to return to
the premiun multiple levels being awarded just 6
months ago. We view the company's decision to create a
tracking stock positively, because it exploits an
opportunity in the market-even if only temporarily. We are
currently targeting a 20% multiple premium to our projected
growth rate given the multiple premiums that other
premium hardline retailers are being awarded. This would
imply a $32 price target on 2000 EPS estimates. We
believe that SPLS is not only one of the best companies
in retailing today, growing consistently at
above-average rates, but also a dominant player in a large,
healthy indudtry-a powerful combination deserving a
These are the stocks that will do well this year.
Over-hyped stocks will crumble at the sparkle of slight
negative news. Solid stocks like SPLS, S, PFE, MSFT, etc
should all do well this year and beyond. No losing sleep
I see your point. The simplicity of prior
messages was in response to what I perceived as old news,
the concensus being positive towards internet play
and tracking stock. Of course, as I think you are
implying concensus is not necessarily applicable to the
stock market. But herd mentality is.
Good description of contrarian investing. Could
you please complete your point and state how you
think it applies to SPLS?
I'm having trouble
making sense of a lot of posts lately (except the SPAM,
An investing contrarian is one who looks beyond
what seems obvious in the day's or the moment's news.
He or she does not deny the accuracy of facts or the
existence of present events and clearly established trends.
Rather, the contrarian investor tries to escape the noise
and step back away from any stampede of the crowd. He
or she seeks to discern how important a current news
item is; what (particularly what is different) could
happen next or has been overlooked; and to what degree
current opinion has become a blind consensus.
contrarian is not easy, nor is it an attitude of mind that
can simply be flipped on like a light switch when
needed. This way of looking at the world, especially the
emotionally charged world of investments, requires enough
discipline to endure loneliness, and means making decisions
in conditions or considerable discomfort. This
attitude is practiced by only a distinct minority of
investors. Part of their distinction is in their high levels
of investing success.
Your thoughts are worth something, as much for
their timely presentation as for their content. Others
share your opinion more than you realize, and you will
be surprised by how much sway you have with your
cotraders. Get your ideas out there. They will be
well-received, and you might begin to see much-needed resources
making an appearance on the horizon. You have influence
today so get out there and recruit the manpower you
need for your projects.