Office Depot
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A Specialty Retailer the Internet Cannot Kill
By Jordan Wathen - May 19, 2013 | Tickers: AZO, ODP, OMX, SPLS
Specialized retailers and category killers make for excellent businesses, but there's a very big difference between good and bad.
Some are runaway successes; others are businesses in perpetual decline. Whether or not a business will fail or succeed comes down to one variable: the effect of tech.
Retail vs. the internet.
Built on the idea that they could deliver office supplies to corporate customers, and offer a range of more »
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My Computer Buying Experience And The Investment Implications
By Chad Henage - May 16, 2013 | Tickers: AAPL, BBY, MSFT, ODP
I recently went in search of a new desktop computer, and there are lessons that investors need to be aware of from this experience. I don't consider myself to be an unusual customer, and if my experience is being replicated across the country, I've got some good news for a few companies, and some bad news for others.
I Have This Problem
Some people say I have a more » -
Can the Office Retailers Survive?
By Dana Blankenhorn - May 5, 2013 | Tickers: ODP, OMX, SPLS
In a few months there will be two office “superstores” left, once Office Depot (NYSE: ODP) finishes its purchase of OfficeMax (NYSE: OMX) and begins its direct competition with Staples (NASDAQ: SPLS).
The question for investors isn't which company will survive, but will any of them? Over the last year, five years, or 10 years, all three of these companies have been losing value and losing money.
How can more »
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Is The Home Improvement Market Still Building Value For Investors?
By Nauman Aly - April 30, 2013 | Tickers: HD, LOW, ODP, OMX
After several years in the housing market doldrums, the news is finally starting to get good. Since 2007, many consumers who were not in danger of losing a home to foreclosure still sat on the sidelines as values tumbled. Today, however, with news on the upswing, housing inventory is beginning to move again, and those who aren't buying are renovating. This is great news for the big box home more »
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The Big Office Supply Merger Creates An Interesting Opportunity
By Matthew Frankel - April 19, 2013 | Tickers: ODP, OMX, SPLS
After announcing their intention to merge with OfficeMax Incorporated (NYSE: OMX), Office Depot (NYSE: ODP) initially spiked to around $6 per share, and wound up settling at around $5 for a little while. Since then, however, shares have shed over 25% of their value, and are currently in the mid-$3 range. With the cost savings expected from the merger, is this a chance to get in at a discount more »
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An Activist Hedge Fund Is Bullish on These Stocks, Should You Buy?
By Meena Krishnamsetty - April 19, 2013 | Tickers: CPWR, IDTI, ODP, PRGS, WPP
If you belong to the school of thought that believes analyzing the fundamentals of a company is the best way to decide if it’s a worthy investment, you may want to take a look at Starboard Value’s top five picks. Founded by Jeffrey Smith in 2002, Starboard Value is a fundamental-oriented activist hedge fund that focuses on small cap stocks.
It has grown the amount of assets it more »
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The Big Office Supply Merger Creates An Interesting Opportunity
By Matthew Frankel - April 17, 2013 | Tickers: ODP, OMX, SPLS
After announcing their intention to merge with OfficeMax Incorporated (NYSE: OMX), Office Depot (NYSE: ODP) initially spiked to around $6 per share, and wound up settling at around $5 for a little while. Since then, however, shares have shed over 25% of their value, currently in the mid-$3 range. With the cost savings expected from the merger, is this a chance to get in at a discount? When looking more »
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Activist Hedge Fund Bullish On These Stocks. Should You Buy?
By Meena Krishnamsetty - April 16, 2013 | Tickers: CPWR, IDTI, ODP, PRGS, WPP
If you belong to the school of thought that believes analyzing the fundamentals of a company is the best way to decide if it’s a worthy investment, you may want to take a look at Starboard Value’s top five picks. Founded by Jeffrey Smith in 2002, Starboard Value is a fundamental-oriented activist hedge fund that focuses on small cap stocks. It has grown the amount of assets it more »
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Selling Office Supplies Is Boring and Dangerous
By Joshua Bondy - April 1, 2013 | Tickers: AMZN, ODP, OMX, SPLS
Value investors are famous for seeking out boring and profitable business. The office supplies market is boring -- but it's not that profitable. However, while its competitors continue to suffer, Staples (NASDAQ: SPLS) remains the sector's one exception.
Has the Internet Changed Everything?
Critics often note that office supply specialty stores face stiff competition from online competitors. Consumers don't care if they get their printer paper from a more »
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Office Supply: That Wasn't Easy
By David Mercer - March 26, 2013 | Tickers: ODP, OMX, SPLS
As an overall sector, retail is intensely competitive. In recent years, margins decreased for even the largest behemoths, such as Wal-Mart, Costco, and Target. Unfortunately, these losses were even more widespread in the office supply sub-sector. In light of these (recent) developments, analysts predict sector consolidation. Recently, Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) announced their merger intentions. To be blunt, office supply struggled since the beginning of the more »
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Office Supply Shake-Out: How to Play Staples, Office Depot, and OfficeMax
By John Macris - March 20, 2013 | Tickers: ODP, OMX, SPLS
With nine months remaining in the calendar year, 2013 has plenty of room left to earn accolades for the record books. For stock market investors, the year has already been earmarked as 1) "the year of the deal," with plenty of M&A activity, and 2) a definite time of transition for the office supply sector.
Pencils, paper, and ink cartriges are a serious business. We entered the new year more » -
Still a Good Investment After Revenue Miss and Merger News
By Timothy Green - March 19, 2013 | Tickers: ODP, OMX, SPLS
For a long time the office supply industry had three main players: Staples (NASDAQ: SPLS), Office Depot (NYSE: ODP), and Office Max (NYSE: OMX). After years of speculation the two smaller companies, Office Depot and Office Max, have agreed to merge with each other in an attempt to become more competitive. Staples does about $24 billion in annual revenue compared to a combined revenue of about $17.5 billion for more »
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The Office Product Industry Is Getting Interesting!
By Shas Dey - March 19, 2013 | Tickers: ODP, OMX, SPLS
The office product industry has been hit by a weakening economy and low customer purchases. Furthermore, competition has increased as bigger retailers like Costco Wholesale and Wal-Mart Stores have entered this segment. Also, companies are facing stiff competition from the online retail giant Amazon.com. This has triggered a price war that is hurting margins.
Staples (NASDAQ: SPLS) tumbled 7%, to $12.34, the lowest price since January 2013, as more »
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Merger of Office Supply Retailers?
By Mike Thiessen - March 18, 2013 | Tickers: ODP, OMX, SPLS
In late February, U.S. office-supply rivals Office Max (NYSE: OMX) and Office Depot (NYSE: ODP) made the exciting but largely expected announcement that they were in advanced talks to execute a so-called "merger of equals." Their combination would create a company with annual revenues of around $18 billion and an employee count of nearly 60,000. The announcement comes after a difficult year for both companies. Facing significant declines more »
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The True Winner in the Office Max/Office Depot Merger
By William DeRosa - March 15, 2013 | Tickers: AMZN, ODP, OMX, SPLS
Recently, Office Max (NYSE: OMX) and Office Depot (NYSE: ODP) announced a $1 billion merger in an effort to consolidate businesses in a struggling industry. Let me get straight to the point: This was a merger for survival ... period. Does anyone remember Hewlett Packard buying Compaq? It's eerily similar, with two inferior competitors banding together out of desperation. I was actually expecting one or both to eventually go under more »
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Why the Office Supply Industry Is so Hot
By Masam Abbas - March 7, 2013 | Tickers: ACCO, ODP, OMX
Certain industries have recently been closely watched by the Street as having great potential for consolidation. The merging of different players within an industry has been happening for different reasons. For example, potential sequestration has been responsible for consolidation in the defense industry. Similarly, the Street views saturation as the main reason for potential industry consolidation in the office supply retail industry. In this context, thr following stocks need special more »
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Staples Inc. – Is it investment worthy ??
By Ashish Agarwal - March 7, 2013 | Tickers: AMZN, ODP, OMX, SPLS
Boston based Staples Inc. (NASDAQ: SPLS) is the world’s largest office products company and second largest internet retailer. Staples Inc serves customers of all sizes and operates throughout America, Asia, Europe, Australia & New Zealand. The office supplies major has recently declared a $0.12 per share cash dividend for quarter ended Feb 2, 2013 (9% increase over the previous quarterly dividend).
The Recent Performance
For the quarter ended Feb more »
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The War for the Supply Closet - Can Staples Stave Off Invasion?
By Jay Jenkins - March 6, 2013 | Tickers: AMZN, ODP, OMX, SPLS
In the wake of the recent announcement of merger talks between Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX), pundits and analysts have increasingly weighed in on the future of the largest office supply chain, Staples (NASDAQ: SPLS). After watching shares decline 45% over the past three years, contrarians are piling on and sounding the horn for a turnaround.
While turnaround stories make great press (who doesn't love reading more »
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Buy Staples for 25% Upside
By Masam Abbas - March 5, 2013 | Tickers: ODP, OMX, SPLS
Recently, I wrote an article on the merger of Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX). I discussed in detail how the merger’s premature announcement led to a massive rise in the respective stocks the day the announcement was put on Office Depot’s website. However, the stocks have been falling since the formal announcement of a merger given that many important details were not given to investors more »
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Shaking Up the Office Supply Space
By Robert Hanley - March 3, 2013 | Tickers: AMZN, ODP, OMX, SPLS
Through a merger announcement that surprised virtually nobody, Office Depot (NYSE: ODP) agreed to buy OfficeMax (NYSE: OMX) for roughly $1.2 billion on Feb. 20. The two companies, along with industry leader Staples (NASDAQ: SPLS), control the office supply store sector. However, the mass merchandisers and online merchants, like Costco and Amazon (NASDAQ: AMZN), have been using their purchasing power and free shipping offers to eliminate the superstores’ profit more »
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