DO you think it will outperform the S&P (to the positive not the negative) meaning when the S&P sells off, ODP will not follow the selloff as severely and when the market moves positively ODP will move significantly higher.
Office Depot has an up hill battle. Please read the financial report. This huge dividend they pay every quarter is truly a drag on the company. They have huge store counts in California, Florida, and Texas which the later are in terrible economic shapes. One bright spot is the Business Division which is holding there own along with the international division. The Mexico unit has pay good dividends to keep the company growing into the south American region. If they can down size the US Retail division and get leases and labor under control to just break even and let the BSD and international unit bring in the bacon. If past is the future then OD is going to reward investor gladly once the economy finally turns around.
I agree with you. If another retailer would purchase ODP you would be able to cut out alot of the admin expenses at the Corporate level. In addition, you would be able to pay off the preferred and save a significant on interest payments. This Company has a lot of value but not in the current state. I wish someone would come out an mention that they are interested in performing DD to buy this Company. Management does not have the incentive to sell this Company for $6 a share since they would not cash out big time and they would loose their job. Instead they keep getting paid with large salaries and bonuses for a stock that is trading at $1.60. Keep up the great work guys. You are running this Company into the ground.