ODP announced a 500 m stock repurchase at the the
same time as they announced that they would not meet
I think that most fund
managers, wall street types, see this as very underhanded.
Announce that you will have poorer than expected earning
then turn around and say that you will buy back your
stock at a much cheaper price.
Hummm, beat down
the price then buy as much as you can at half of what
it was last month. Wish I could do that. But I don't
think it inspires confidence from fund
BTW, SSB is making all the block trades, aren't they
acting on ODP's behalf? And if so, with all the trades
at 10 - 10.5, isn't ODP in effect making this the
odp buy ups what a joke. Toured odp stores in
Fla. region :they look like Staples 's stores 2 years
ago, maybe not a bad thing. aisles jammed with floor
displays , a fair amt of outs, housekeeping on the weak
side, female stockers, maybe will get a sales incr.
with a boost in margins on the store side.
thanks sah05. i didn`t realise that & i think
your exactly rite.if they would have bought that much
stock @ in 10 or20,000 share blocks they would have
driven the price sky high.what do you think about ups
Block trades are buys and sells. The reason these
large transactions are handled by member firms such as
Smith Barney is so that the trades don't play havoc
with the price of the stock. So the uptick in price is
indicative of someone paying more than the asking price--a
bullish sign. There is no indication that odp is doing
the buying at this time. Furthermore the initiator of
the block trade pays all commissions involved in the
transactions. The block trades are thus dampening the price of
the stock, preventing it from going higher at this
time. Volume generally drives the price of the stock up
or down--but block trades are the exception.
ODP's PEG is 1.98 (as reported by Yahoo). Yes,
the P/E is low and the Price/Cash Flow is low, and
the Price/Sales is low, but the projected growth rate
is low (6.4% for year ending Dec 99), too. Are the
estimates of growth rates for ODP artificially low? Why?
Block trade is neither buy nor sell. A broker
represents both the buy and sell side of a
transaction with the
intention of crossing them. This is
so called "crossed by
someone". It is not traded
in the Specilist's account or
investor. The recent block were carried on between
company and mutual funds. ODP has been under great
from online office supply companies as well
as SPLS, OMX...Most
fund managers are unloading
ODP since they bought at very cheap
Uncertainty is disrupts the Street. This is the reason
ODP start to repurchase their shares with $500 mil.
the Street does not respond accordingly. The
price is still
around 11 1/8 (no change today) even
today CC BBY SPLS OFIS are
all up with market up
trend. I hope ODP can implement this
Wait and See...
this thing about the E-Commerce eating into worth
is a crock!
BBY with 2.4% net margin is selling @
10 times book with more debt and what type of
business has more pressure from direct sales and
E-Commerce than BBY or CC or CPU and they are trading light
years beyond the value of odp"
WHAT A BUY THIS
Something big is going on in this stock. The
block trades have all been based on an uptick in price
by Solomon Smith Barney. If the trades were SELL
orders, the trades would have occurred on a lower price.
Someone is buying big time. Something appears to be in
I bought after the Staples merger went south at 13. Road it up to 23 and sold... Recently bought 5000 shares at 10. ODP has support here and will go to 18 by year end. Mark my words.