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...]
Reducing position in Xerox
Yesterday I reduced position in the stock at $11.25. This reduction was done to reduce the risk of a potential value trap. The stock remains cheap and the company could have a bright future under an activist or if taken over by another company. Current management is disappointing to say the least. Despite poor performance, they continue to receive fat bonuses as I … [Read more...]
Staples: Is a Meltdown Coming?
Summary Staples has been struggling for some time. Things are getting worse rather than better. Can't expect anything good from potentially very bad management. The company needs an activist investor. Wall Street estimate of 97 cents is optimistic. Expected EPS will come down over the next six months. Probable value trap for the time being until operations … [Read more...]
