http://biz.yahoo.com/prnews/981105/ny_s_p_per_1.html I don't think SPLS is losing ground currently, it's simply consolidating it's gains. The retail sector announces earnings after most other stocks, this Q earnings have been much more worrisome than at any other time i can recall recently. It's not surprising that many retail stocks are digesting their gains and pausing before earnings. SPLS has been comfortable at the P/E of 60 or so, (which amazes me since LU has a lower P/E, but SPLS hasn't missed earnings either) so I am not concerned. Keep in mind that Fidelity had SPLS listed as a good reccession proof stock, while I have not seen cash outflows from SPLS, some may be switching to other securities if the recession scare is gone. I can only hope that SPLS is establishing some support around 30 before the 12th. If they can establish 30 as the bottom before then, we could get a very nice run up after earnings. Keep in mind that in the past management has been happy to keep share price under 30, so another 2/3 split is not out of the question in the near future. At any rate, I just bought a few Dec SPLS 35 calls options, in addition to my long position in SPLS.
Look at the P/E. It's about 62. That's much higher than Staples' growth rate. Unless SPLS soundly beats the whispered earnings, which are a couple of cents higher than First Call estimates, I don't see much upside potential in this stock for awhile. Remember, it started the year around 18-19. That's a healthy increase. The price appears to be in a trading range and may not break out for awhile. I've held this stock for 4 years and am not losing sleep over this stock losing a few points now. Until they miss earnings, this stock will continue to grow.