Below is a brief discussion of the three investment ideas I presented at the Cyprus Value Investor Conference. Office Depot (ODP) is a cost savings story where reductions have resulted in significant improvements in operating margins over the last few years. Sales growth though remains a headache and last quarter same-store sales were -6% (a 3-year low). Management … [Read more...]
Office Depot: Value Trap Or Opportunity?
Summary Points: The stock tanked after the deal with Staples collapsed. Management has been taking steps that could positively influence the stock. Stock has found a base while its cheap price (under 3x EV/EBITDA) implies that any positive news will help it recover. Where there is fear, there is opportunity. Office Depot (NYSE:ODP) presents such a case. Value trap … [Read more...]
