Over the years, the Staples Elite have created a culture at Staples which is so toxic and so politically corporate correct, their is no possible chance of resuscitating this once admired company. Instead of surrounding oneself with Indian's who can think on their own, the CEO has surrounded himself by the obligatory corporate spineless pinheads who are afraid to come to actually listen to the "doer's" in the field. This is the reasoning why Management was so blindsided by store sales falling off the cliff. The former retail president was in way over his head! He has never had a clue! Spineless, bumbling kiss #$%$ who embarr#$%$ed himself on each Earnings call with Wall Street. What's so egregious, he stayed in a position of power for ever. Scary! Even in the late 80's, early 90's, when he was promoted to an HR Regional Manager, it wasn't because he was smart, he had the brownest nose. So,ODP will not save SPLS. Rather RS has to take a look at all levels of Leadership and start asking some tough questions.
Increasing store traffic by adding janitorial supplies? Really. Hardly a reason why a consumer will decide to travel to a Staples retail store. There is no help whatsoever in many stores. It appears they have no idea how to deal with a declining customer retail base.
listen to the conference call. the reason why they are gonna hit is the extra week 53. however in the same breath Ron suggested Sandy has adversely impacted their revenues. Hey having 12000 options, at 15, I can only hedge my holdings since they are under water.
Short or Long the proof will be in the details revealed this week. Hedging your Long position may afford you an opportunity to recoup some of the monies you have lost....SPLS may be the second to Amazon, however in order to compete, based on their last earnings conference call, they have to evaluate their pricing since it doesn't compare to Amazon's. They have a difficult time differentiating themselves from Best Buy and you see where Best Buy is. Just sayin.
682 Million shares outstanding multiplied by 16 dollars a share.....This is close to 11 billion dollars for a company who's revenues are shrinking.I don't think Bain nor any other company would have that type of capital to acquire any company, yet a company who is in a free fall in Europe and chasing Amazon domestically. Seriously it doesn't take an MBA to do the math. It is simple arithmatic.
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
9/28/2012 78,137,890 19,777,958 3.950756
9/14/2012 73,438,673 20,533,244 3.576574
8/31/2012 69,331,654 13,608,630 5.094683
8/15/2012 63,593,835 16,133,015 3.941844
7/31/2012 59,380,283 11,407,965 5.205160
7/13/2012 51,358,538 7,880,284 6.517346
6/29/2012 52,366,541 10,518,916 4.978321
6/15/2012 50,206,298 10,727,767 4.680032
5/31/2012 50,761,836 15,238,265 3.331208
5/15/2012 50,196,861 10,344,669 4.852438
Read more: http://www.nasdaq.com/symbol/spls/short-interest#ixzz28qA210Vv
In essence the box stores are essentially a tech retailer selling a product which has no cache. Without Apple, their model is toast. Plus consolidation is paramount in this secular economy. About taking them private, he wanted no part of that. His VC focuses on start-ups.
At the end of the day, Wall Street didn't like what they heard yesterday. Agreed closing 30 US stores was Ron's way of trying to placate Wall Street, however Wall Street like many of us realize that he needs to add a 0 onto that 30 and multiply it by 1.5 in order to make any significant impact. Yes 450 should be the number of stores to get the analyst's attention. 74 million shares short! This ranks 7th overall. Yes 7th! Obviously that leak to Forbes a few weeks ago was an attempt by Insiders to get a bump prior to this joke of a re-org. Get serious. Their retail model is broken. Management was too arrogant to get ahead of the curve. They have been hiding behind their Harvard educations for a long time. Stembergh was the true visionary behind their early success. Ron has a bunch of yes-men he surrounds himself with which has got SPLS in this situation. Demos is a blundering idiot. Did you listen to him on their last analyst earnings report? He had no clue what was going on. Now Ron promotes him to be second in command. Wow! If I didn't believe Wall Street was rigged, I would bet my kid's college education money that this company is the next Circuit City.
Bro, Come on, you are a so-called expert on the Office Products industry????Wow!!!Honestly, my six year old can be an expert in a field where there exists 2 100 pound gorilla's and a bunch of wanna-bees which are all hemorraging and cannot wait be taken out by the likes of ODP and Staples.
Take a look at the recent history. No significant transactions as of late. Black out period has been lifted. Management believes the stock is seriously undervalued!
Huhh? I am curious. What was so impressive with the earnings call to move this stock 10% in a day? Trust me, I would welcome the upward movement.
SPLS stock has been dead money for the past 22 months. Buy at 22.50 sell at 23.25. Short at 23.25, but it back at 22.50. This trading range is typical for a mature stock in a
rather dull industry. Beating the street by a nickle and raising 2006 guidance is the only way this stock sees 30.