It makes no sense. Really. None at all. "It is not logical". As I said before, that's the bad news. The good news is that there is absolutely no known viable reason that ODP won't head on back up. Question is, when? Answer is, who knows? ........... Because ........ it ........ makes ........... no ........ sense.
The fall from the mid 20s to $18 or $19 is not all that surprising. I think the tendency on this board is to overestimate how long this firm can continue to grow at 15% plus. Saturation is setting in. SSS increases at ODP stores were only 3% and I doubt they are making big money on their internet stores.
If people placed a sizable value on internet operations, part of ODP's fall might be related to the major correction on internet stocks. I feel this is an $18 stock. I have to admit, I am a bit surprised by the plunge into $15.50 territory, but then again the prospects of rising interest rates is hitting all stocks and ODP is a high beta stock.
Good luck, but don't think you are getting the bargain of the century if you buy ODP. A bargain, but a modest one.
Hi again. Thanks for the good wishes that my being "otherwise occupied" for awhile is positive (or something to that effect). (Day off today to try and catch up with everyday life things). And yes, mostly, in the long run I believe it'll prove to be positive.
I don't really know how much this matters, but on the consumer level, it occurs to me that SPLS outlets are situated in malls, IOW, highly visible (constant reminder) and ODP seperate stores (at least in Portland, OR) are usually in standalone locations, not as easily accessible. The "new kid on the block in your face" syndrome?