and buy ODP. ODP good company with good
multiples,and a great internet business.....I am sure you guys
know all this. I feel like the love affair with
Staples might be coming to an end.
OK go ahead
and beat me up, SPls longs...I don't blame you. I
tried several times to buy Staples, but the dam stock
is all over the place. ODP just looks better to me
at this point for upside and better valuations.
Reason why SDOT is losing money at this time it
is because IT HAS JUST STARTED THE .COM BUSINESS!
ODP has been doing it for some time, and of course it
is now profitable.
SO WILL SDOT when the
business is starts to take off. There is a huge market for
ordering stationery over the Internet. And the business
has just got started. Imagine if you were an office
manager, wouldn't it be so convenient to order all the
supplies over the Internet and have them delivered
The question is not whether SDOT is profitable
compared to ODP. The question is whether it will catch up
and surpass ODP. And the answer is YES! Because SDOT
has more competent and energetic management team !!
I know you rednecks don't understand hockey, but
on a power play, one team has a manpower advantage.
In the office supply world, SPLS has had an
advantage from the time the merger was called off until
now. If ODP's new stores contribute favorably to SSS,
I believe the 2 companies will trade at similar
multiples, and if e-comm continues at its current pace, ODP
will surpass SPLS as the industry leader and trade at
a higher multiple - whether SPLS comes down, ODP
goes up or a little of both is unclear, but the last 2
days portends good news only for SPLS shorts.
I agree, right now,while Staples is just
developing the infrastructure, they are losing, and
considering their agressive plans for expansion, they will
have a loss for a while longer. But, I also believe
the management is wise in being agressive about
this.Also, very wisely, they know that for at least the
immediate future, brick and mortar is the way to go.I
believe this is ODP philosophy also.
banging heads. Let's just conclude that you feel ODP is
the better play, and I feel Staples will be the
winner. Let's just see how it plays out. Good luck to you
in your investments.
Lets see if ODP beats that forecast. As for
e-commerce, ODP's sales were about $130 million IN THE 4th
QUARTER ALONE - about the same as SDOT did all year!!
Increases were 338% for the quarter and 426% for the year.
Now, when you're sales are that high, it's hard to
keep up those lofty increases, so next year I expect
SDOT's percentage increase will exceed ODP's, but bottom
line: ODP makes money, SDOT loses it.