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Staples, Inc. Message Board

  • sarju_12 sarju_12 Nov 5, 1998 4:39 PM Flag

    What is it?

    What is going on with this stock? Why it is going down?

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    • ALSO--Why doesn't anyone post here anymore? I feel like I'm the only stockholder left owning SPLS!! Would like some analysis from someone--Please!--Sylvester!!

      • 1 Reply to sylvester24121
      • 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.

 
SPLS
8.615-0.065(-0.75%)11:16 AMEDT