Staples is barely making money as it is. If they take on the perpetually losing balance sheet of Office Depot, it will be the end of both of them. Staples would be much better off just sitting on the sidelines and waiting until Office Depot finally implodes and goes out of business. Staples could then just go in and buy up some of the stores (that actually make a profit) in areas that they are not in at the present time. Add to that the dividend problem. If this deal goes through, I would bet that there will not be any more dividends to Staple holders for the foreseeable future. I help Office Depot for a long time and made a profit on it a few times, but I have always felt that the Office Depot company was toxic.
You better enjoy anything you can get. When Office Depot is brought into the fold, there will not be any more dividends. The purchase of O.D. is the worst thing management of Staples have ever done to their shareholders. The sad part of it is they were bullied into it by one big holder who will make a fortune from the "merger".
Staples is looking for a junk status loan to buy this ragtag company. That should tell investors how good the deal REALLY is. :p
When the idiots buy Office Depot, dividends will just be wishful thinking. This whole thing is going down just to enrich a few shareholders. The small holder will be screwed, like usual.
The same with me. I made plenty off of this stock, but I didn't think Staples would be so stupid as to do a merger. If Starboard were not bullying them, I do not think it would have happened for at least another five years, if at all. I can't understand how these huge companies let one shareholder bully them so much when they KNOW all that holder wants to do is get it high enough to dump. If I were a holder of Staples, I would vote a resounding "NO".
Nothing has changed with this company. They make their earnings calls seem so upbeat, yet they can't hide the fact that their bottom line is STILL RED. WOW!!! They beat expectations, they earned this or that...BUT IT IS STILL RED on the bottom line.
If Staples does NOT end up buying this company, it will eventually go the way of the dinosaur. If Staples DOES end up buying O.D., then Staples will be doomed as well.
The only thing that O.D. does well is hemorrhage money.
I would not be too positive on that Dividend if I were you. Chances are pretty much that it will be history sooner or later when Staples takes on the toxic O.D. mess.
Dude....Things have been ugly with ODP for a great many years now. The difference NOW is that Jeffery Smith and company is trying to bully O.D. and Staples into merging so that his company can clean up. Staples needs to steer clear of O.D. and tell Mr Smith to go to hlle.
"I would be interested in knowing what their hopeful desired target is here. "
Their "desired target" is to clean up when they talk the ignorant shareholders into a merger. The shareholders are told how great things will be, blah, blah, blah. Not true. The only thing that places like Starboard is successful at is making money when they bully companies into doing what they want.
If Staples knuckles under and buys/or merges with O.D., it will be the beginning of the end for Staples, and the shareholders will lose their dividends.
Why would you be a fool to hold a company that is actually profitable? I figure that it is better to have disappointing profits than no profits at all. Maybe you should go and buy yourself some Office Depot stock. When was the last time THAT company showed black on the bottom line?
I don't understand WHY Staples shareholders would WANT to merge with Office Depot. As soon as they do, they will lose their dividend - just as O.M. shareholders have. O.D. doesn't pay dividends. The only people who are getting rich from these ridiculous deals are the folks at Starboard and the management at O.D.
Look at it this way: Office Max - Made Money, O.D. consistently lost money. They merge. Now you have a much BIGGER company that is losing money.
Staples - Makes money. , O.D. STILL losing money. Put them together and you will have a HUGE company losing money.
Office Depot is toxic. The shareholders of Staples better vote "NO" if a merger deal ever come up.
I said: "They are still the same companies folks. They are worth no more now than a few months ago.". Tell me, has their sales gone up astronomically since that announcement? Has Jesus Christ come down and started running one of the companies and said that it will hence forth be the greatest company in existence? No? Then re-read the original post.
The actual value of the companies has not changed. The perceived value has changed because of rumors of a merger or sale. If people want to go head over heals in a pyramid scheme, that's fine with me. But just because two companies MIGHT merge does not make them more valuable - Especially when one of them never shows anything but red on the bottom line, and seems to have never paid a dividend. I would almost guarantee you that Staples owners will lose their dividend if Staples does INDEED buy O.D.
Consider the prices of each before this circus started. Why were they at that level? What has happened ti either one of them to make them more valuable? Nothing. Now, keep thinking about it and put the two companies together.
After the "merger or buyout" the company will have approximately 1.2 billion shares (roughly the number of each company now added together). Now, think real hard about how many hundreds of millions of dollars O.D. is running through "right now" trying to get its ducks in a row after taking over O.M. It will be even worse this time around because both companies are much bigger.
So, if this "merger" or whatever people want to call it happens, instead of Staples being a money making machine, as they are now, Staples will just be another "Office Depot" struggling to figure out what color of red pen to use for its bottom line.
Staples shareholders will rue the day this happens: They will eventually have a falling stock price and no dividends on top of that. Office Depot is a toxic company. Staples should steer clear.
As for you buying in again if it reaches $6: I had a buy set when it dropped to around $6.25 fro $7, and missed it by a few cents. Just because I do not think the company is worth what people are paying doesn't mean that I won't take advantage of their trades.
I will stand my my position that they are worth no more now than they were then. If you had an old convertible that listed for $10,000, you would think that would be all it is worth, right? But, if one day George Clooney dropped by and took it for a spin and used it for s few minutes in a movie, the perceived value of the car would go up - when in reality it is worth no more than before he got behind the wheel.
The stock market is too high, and it will fall. It is getting close to time for another crash. There are not too many stocks out there that are worth what they cost right now.
"nothing except for words and rumors" Like I said: Read the post. If you CAN'T understand what I am talking about, then get out while you still have a shirt on your back because it seems that you are one of those people who invests based on emotions - A sure way to lose said shirt. I have already made my money off of O.D. - three times to be exact. You have a good day now..
The two companies came together to form a better competitor to Staples. When that happened, Office Max holders lost their dividend because O.D. does NOT pay a dividend. The same thing will happen if they get together with Staples. Staples shareholders can kiss their dividend goodbye.
Robert, there is no guarantee that the merger/buyout will be allowed. I got out a while back and said then that it was going to go up. I just needed my money for something else at the time. I wish you luck if you choose to hang around. If you want a good dividend stock, look to the food companies. People will always need to eat and if you look at their prices historically, they have been pretty stable. AT&T is paying almost 5.5percent right now as well. Happy Holidays and Merry Christmas to you as well.
staplers 101 - You are an idiot. Read my post fool. I am talking about the worth of the company - not whispers and such. Just because the price is going up does not make it worth more. Do you really think Netflix is worth what it cost? If you do, than you are indeed a fool. The stock market is nothing more than a Pyramid Scheme and MOST investors know it. But O.D. doesn't even pay a dividend. If Staples merges with this company, it will be a mistake.
Three months ago, Staples was at around $11.50 and Office Depot was around $4.40. Absolutely nothing has happened since then that would justify the rise in price that we are now seeing in both companies. nothing except for words and rumors.
They are still the same companies folks. They are worth no more now than a few months ago. This instance is like so many others in the market when all it takes is for someone to whisper something and BOOM - there it goes. Its ridiculous.
Is there something wrong with you? The frigging company is still in the process of reinventing itself after the merger with OfficeMax. There is a ton of work still to do. If you own a couple of shares and are only holding them in hope of a quick deal with Staples or someone else, you need to take a Valium and sit back because I doubt that it is coming anytime soon.