Last time I was in at 18 3/8 and out at 23 1/4. Great short term play on a great stock. But this time...management is hedging, and the quarters numbers seemed "stretched". It's not just Merrill, they only provided the flame for the fire, management's comments did the rest. I think it best to see how this test of the $18 support progresses before you commit big. Just MHO. Good investing longs.
While someone here has damned Fuente for mentioning second half issues, the thing to remember is that he might have been optimistic when he mentioned "challenges." The company only made quarterly projections when you exclude extraordinary items - so actually ODP really didn't meet expectations except through spin. The situation might be tougher than is now apparent to us smaller investors. Let's see where this dip bottoms and figure out whether it's time to get in again.
David I. Fuente commented: "Our first quarter results reflect our continuing ability to generate sustainable, profitable growth. While our sales were somewhat softer than expected, margins remained strong throughout the quarter. As we move forward, we are excited about our opportunities in all areas of the business, and our outlook for the balance of 1999 continues to be healthy."
I do have to disagree about ODP not meeting expectations. They did meet them. Analysts do not include one-time charges in their estimates. If you think they did not make Q2, then I guess you must also think they have missed the last three quarters also. They took charges in Q3, Q4, and Q1 for the Viking merger