STAPLES Heads for a fall?

Discussion in 'Stocks' started by Peter9998, Sep 24, 2011.

  1. Peter9998



    This wa on another trading site that I thought I would post. The guy who posted it was an ex board member. What do you guys think?

    I quote"

    When a company stops high level investment in opening and transitioning new stores after Q2 it should ring alarm bells.

    Secondly when the same company reduces forecasted sales and reduces store level budgets to show an inflated YTD comp and YTD Budget sales, this should also ring bells.

    A shrinking retail market for office supplies and a large retail square footage is only going to lead to store closures.

    I agree the .com is big, growing and profitable. They will not let this side of the business support the retail foot print.

    Store closures, lay offs are around the corner.

    There will be a split of the .com business away from the retail side. Amazon ring any bells for you folks.

    The copy and print centers and NOT doing the business expected. The Easy Tech business is being down sized as we speak. They are going to demote or fire the lead techs, who are the people who drive the tech business.

    When a company redirects its investment capital away from growth and towards measuring its business (ask them about V.I.B.E.), it means they are circling the wagons.

    Trust me I know. I have company shares and I am selling before Q3 results come out.

    Here is what I see and have seen.

    As a previously operations led company, they changed to a sales lead culture about 3 years ago.

    They implemented a split business model in the stores so that they spread there investment too thin.

    As none of the two new businesses paid any real dividends, they are now struggling to have capital to re-invest. They set such high return values from stores at nearly 20% YTD growth, that they will flat line in Q3.

    The way they are hoping to avoiding this is by deflating the budgets and goals to appease the market. This is short term figure management to post short term numbers.

    With this type of short term management, I don’t see how they can expect the market to think they will grow over the next 5 – 10 years.

    " end quote.

    Interesting I thought.

  2. Speaking of interesting, it is that this was your first post. Benevolent public service announcement? Shirley, you don't think you can front run on this site????

    Your notions on "what" drives stock prices is a little sophomoric. They make good alibis. More importantly, where were YOU at $30? Or $26?

    Unfilled gap at $20ish is beckoning.
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  3. nitro


  4. et is the premier frontrunning site. Any mention here moves at least 20 million.