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Office Depot, Inc. Message Board

  • realoldguy realoldguy Sep 16, 1999 11:02 AM Flag


    ODP announced a 500 m stock repurchase at the the
    same time as they announced that they would not meet
    earnings expectations.

    I think that most fund
    managers, wall street types, see this as very underhanded.
    Announce that you will have poorer than expected earning
    then turn around and say that you will buy back your
    stock at a much cheaper price.

    Hummm, beat down
    the price then buy as much as you can at half of what
    it was last month. Wish I could do that. But I don't
    think it inspires confidence from fund

    BTW, SSB is making all the block trades, aren't they
    acting on ODP's behalf? And if so, with all the trades
    at 10 - 10.5, isn't ODP in effect making this the

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    • Nobody has mentioned ODP buying UPS. It would be and can be UPS buying them. And it could happen. IMHO.

    • odp buy ups what a joke. Toured odp stores in
      Fla. region :they look like Staples 's stores 2 years
      ago, maybe not a bad thing. aisles jammed with floor
      displays , a fair amt of outs, housekeeping on the weak
      side, female stockers, maybe will get a sales incr.
      with a boost in margins on the store side.

    • thanks sah05. i didn`t realise that & i think
      your exactly rite.if they would have bought that much
      stock @ in 10 or20,000 share blocks they would have
      driven the price sky high.what do you think about ups
      buying odp?.

    • Block trades are buys and sells. The reason these
      large transactions are handled by member firms such as
      Smith Barney is so that the trades don't play havoc
      with the price of the stock. So the uptick in price is
      indicative of someone paying more than the asking price--a
      bullish sign. There is no indication that odp is doing
      the buying at this time. Furthermore the initiator of
      the block trade pays all commissions involved in the
      transactions. The block trades are thus dampening the price of
      the stock, preventing it from going higher at this
      time. Volume generally drives the price of the stock up
      or down--but block trades are the exception.

    • ODP's PEG is 1.98 (as reported by Yahoo). Yes,
      the P/E is low and the Price/Cash Flow is low, and
      the Price/Sales is low, but the projected growth rate
      is low (6.4% for year ending Dec 99), too. Are the
      estimates of growth rates for ODP artificially low? Why?

    • Block trade is neither buy nor sell. A broker
      represents both the buy and sell side of a
      transaction with the
      intention of crossing them. This is
      so called "crossed by
      someone". It is not traded
      in the Specilist's account or
      investor. The recent block were carried on between
      company and mutual funds. ODP has been under great
      from online office supply companies as well
      as SPLS, OMX...Most
      fund managers are unloading
      ODP since they bought at very cheap
      Uncertainty is disrupts the Street. This is the reason

      ODP start to repurchase their shares with $500 mil.
      the Street does not respond accordingly. The
      price is still
      around 11 1/8 (no change today) even
      today CC BBY SPLS OFIS are
      all up with market up
      trend. I hope ODP can implement this

      Wait and See...

    • this thing about the E-Commerce eating into worth
      is a crock!
      BBY with 2.4% net margin is selling @
      10 times book with more debt and what type of
      business has more pressure from direct sales and
      E-Commerce than BBY or CC or CPU and they are trading light
      years beyond the value of odp"
      EQUITY IS.......

    • ODP is propping their price up with some big purchases of their announced $500 million buy back" When they back off---LOOK OUT!!!
      Probably see 7_+

    • Something big is going on in this stock. The
      block trades have all been based on an uptick in price
      by Solomon Smith Barney. If the trades were SELL
      orders, the trades would have occurred on a lower price.
      Someone is buying big time. Something appears to be in
      the works.

    • I bought after the Staples merger went south at 13. Road it up to 23 and sold... Recently bought 5000 shares at 10. ODP has support here and will go to 18 by year end. Mark my words.


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