this isn't the climax...probably will occur with
a 3rd tightening by the Fed. While I believe $.99
for '99 is a soft number, once this stock hits 14-15
times say $.95, then you might as well buy and hold for
a year. This is very close to being an outstanding
buying opportunity. Of course, as Shorty would
say...this is just one dumb Bastid's opinion. Good
The stock price is now 37.3% below where it was
at the start of the year and 25% below where I
bought it just a month ago. Is there any reason for this
stock to be punished this way? All I know of is false
rumors and one man's opinion at DLJ. Do they really
carry that much weight?
OMX and SPLS have slowly
started moving up, but ODP continues to slip.
anyone has any reasons that can be discussed here,
please bring them forth.
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.
I have traded this stock many times in the past
year. I thought I had the deal of deals to get in at 17
7/8. Fed policy does worry me, but seriously how low
can it go. SPLS is 50 P/E. We are 24. If we hold we
will get our money back.
Happy Friday all.
have modeled cash flows in 2000 which values odp
between a low of 13 1/2 and a max price of 30 with a
target of 23 based on 12.5 times cash flow. concur with
b zerkley who advises to hold steady. no need to
panic given the strength on the balance sheet with in
excess of 3/4 billion dollars in cash.
bottom fishing is tuff, but odp getting there.
Once it hits for any time period, watch all the shorts
that bought in at the downgrade shake out, take their
gain, and then odp will recover,and I believe recover
rather quickly. Patience and averaging as others have
mentioned is important.
Good opportunity here,
This weeks action:
OUT @ 16 1/4
SFP IN @ 23 7/8
SFP @ 26
ODP @ 15 3/8
That's why you cut your losses
and get into something you feel more comfortable
with, make money while you would have kept losing. You
can then make the decision to get back into your
losing stock at a lower price. Even if ODP went up, it
would have been a stretch.
Watch WMT @ 40 1/4.
Use your own judgement. I'll check back mid next
week. Hey, you win some, you lose some.
while it could hit 10...I'll be in heavy way
before that. Doesn't mean I won't get spanked, but
shorts aren't dumb, and they know that even with rising
interest rates there's value here at 14-15 times this
years earnings (assuming a 13 1/2-14 price).
will close up this trade and look for the next weak
sector. After tax selling, I believe ODP could trade in
the high teens by year end. Better than passbook
savings. Just MO...good investing.
Hey Prime, you've
been quite...what do your tea leaves say?