Finding Value in Office Depot
With today's thudding drop it seems that ODP may become a decent value pick, at some point.
A decade later, paper and office supplies remain a low margin business and ODP's stock has returned about 2% per year, annualized, in the 10 years since the merger fell through. With today's thudding drop it seems that ODP may become a decent value pick, at some point. Maybe even for a group like Staples. In other news:
- The Gap (GPS) "discovered" sweat shop labor conditions at one of its vendors. The stock is slightly higher today; very encouraging price action for Gap bulls.
- I took Mrs. Jeff Macke and the Macke Children to White Plains for a Sesame Street Production of "When Elmo Grows Up" yesterday. What I want to be when I grow up is someone who sells Mylar Elmo balloons for $10 a pop to the parents of frenzied 3-year-olds.
- The research side of Prof. Adami's beloved Goldman Sachs (GS) upgrades Dell (DELL) to the vaunted "Conviction Buy List" and Dell immediately hits Adami's long-held $30 price target. Say what you will about what the consumer should be doing; after what we heard from Apple (AAPL), Microsoft (MSFT) and Intel (INTC) it's clear that someone, somewhere is buying a bunch of computers.
- Is it going to be this quiet until the Fed Meeting?
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