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Office Depot, Inc. Message Board

  • robertvendel robertvendel Jan 3, 2013 2:32 PM Flag

    What is causing ODP to Rise?

    Happy New Year all.. I am trying to figure out whey the big rise in ODP the last couple of days. Any factual info on this and thoughts on where we are going on this rise? I am a long for the record..



    Sentiment: Hold

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    • Someone likes the changes to the business model!

    • I do understand, about money being tied up. Even though I have averaged down multiple times, my money has been tied up on the for over two years. I did do a couple of quick trades on ODP before getting stuck on this long trade. I also am like you and believe the BC deal is like an ancor in the long term.

      Sentiment: Buy

    • I think the more important question is what do you think the company is worth? What is the per share intrinstic value of the business. If you answer that question it can be a guide as to when to buy, sell, average down etc. If you can't answer then you should not buy, and wait for an investment that can be analyzed. My own analysis indicated that the company was worth around 6.00-6.50 a share, based on a asset valuation model. The catalyst I'm counting on to unlock that value is the activest hedge fund, pushing for improvement in operating margins. And the possible sale of the 50% stake in the mexican subsidary. Buying and holding hoping for it to reach the value you paid is not a good idea, you are tying up capital and incuring large opportunity costs, not to mention it may never return to the price you paid. That is why it's important to have a good idea of the business value and buy at least 50% discount to this to obtain a good margin of safety.

      Sentiment: Hold

    • I believe it is going up with the market Retail stocks tend to jump around more than others. I have averaged down the last two years and am now ready for the rise in stock price.

      Sentiment: Buy

    • I have no idea Bob. I think you and I are in the same boat. I was stupid to not set a stop when it got up to $6.25 or so a couple of years ago.

      Sentiment: Hold

      • 1 Reply to justa_country_boy
      • Don't feel bad, I am stuck at $7.99 a share! Were you an owner in early 2010? I was way up at $9.19 and figured the next day when the report came out, it was going up more, than I would sell! Well, it was bad and dropped to $8.55 at the opening which I wanted to sell, but the net was down! True story!

        By the time I could get to my account, it was the end of the day because I was tied up and by then, it was down to $7.02 a share! I have been stuck ever since and the closest I came back to that was the $6.25 when all those BS rumors were out they were going to be bought out! So as you are doing, I am just waiting to get close to my number or even, then I am OUT for good!

        Sentiment: Hold

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