I have been holding Staples for a while, and I
think that the SDOT tracking stock or IPO will never
play out. There is nothing bad about keeping this
internet company locked into its parent "old economy"
stock in the LONG TERM. However, in the short term, as
we are seeing now, the losses of Staples.com, etc.
is dragging down the company. Anyone looking for a
quick play stock should not invest in Staples. If you
are looking to hold for about 2-3 years, this is a
great company. I would not accumulate but hold for now,
as we could drift into the low teens. Looking on to
the future, my target on Staples for July 4, 2001 is
a modest $30. Do any of you agree with this
assessment? I would like to read your responses.
The market has already expected SSS to be down
for stpls. If they aren't down more than 5% we will
see a nice boost in the stock price ANF SSS were down
4% and the stock went up 22% on Thursday.The tech
sector is a little nervous right now, and this stock was
definitely beaten down. Low p/e and the 2 stores I
everday are busy.24 by Eom.
Man, don't mean to bust your bubble but 250
shares is not much. I'd say a 'major stockholder' would
have 2500 at a minimum. A friend of mine has 8000
Wal-mart and he's considered just a little cut above
'average' at Wally-World. He does have a standing invite to
their quarterly meetings. But you're right..SPLS is a
must buy under 18..In fact, my Wal-mart friend is the
on who put me on to it, FWIW...eom
as a major shareholder (I'm long 250 shares) I
feel uniquely qualified to tell all of you that this
stock is a must buy anywhere below 18. Years from now
people won't believe you when you told them that you got
in below 50!
My wisdom is my strength,
According to Forrester Research, if you skim
10--15% of REVENUE off the top of a typical superstore,
then you reduce profitability to $0 (fixed costs, ya
If that's the case, and if office supply sales
continue to skyrocket on the 'net (through either SDOT or
the others), then SPLS is going to have to close a
whole bunch of stores.
Gloomy outlook for SPLS,
even if SDOT ever becomes profitable.
Here's a premise that I think alot of people need
to consider. E-commerce is not going to generate a
single dime of increased revenue...ever. This applies to
Staples, Office Max, Home Depot, CVS, anyone.
it will do, over time, is reduce the cost of
operating a retail presence.
This whole e-tailing
phenomenon is completely misunderstood. It's not some magic
bullet that's going to generate obscene revenue and make
incredible profits. It is the way to OPERATE your business
in an efficient and cost conscious way.
Staples may suffer short term as the cost of establishing
an internet e-tailing presence, but it's necessary
and will sustain their growth and
And by the way, they won't be closing any stores due
to lost revenue over the internet. Instead, the cost
of running SDOT will become a fixed cost to the
stores. This whole idea of separating the two is