SPLS
Staples Inc.
Consumer, Event Driven/Special Sit
06/25/2014
Presented
| Date | 06/23/2014 |
| Price | $11.23 |
| Market Cap | $7.26B |
| Ent Value | $7.68B |
| P/E Ratio | 17.72x |
| Book Value | $9.41 |
| Div Yield | 2.9% |
| Shares O/S | 646.62M |
| Ave Daily Vol | 11,510,000 |
| Short Int | 14.67% |
Current
| Price | $10.25 |
| Market Cap | $6.69B |
| Staples, Inc., together with its subsidiaries, operates office products superstores. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. The company offers a range of office supplies, business technology products and services, facility and breakroom supplies, computers and mobility products, and office furniture under the Staples, Quill, and other proprietary brands. It also provides copy and print services to retail and delivery customers, as well as technology services through its EasyTech business. The company sells and delivers office products and services directly to businesses and consumers through its Staples.com and Quill.com Websites, as well as through retail stores, contract sales force, and direct mail catalog business. As of March 7, 2014, it operated approximately 2,200 stores worldwide. The company also operated 116 distribution and fulfillment centers in 30 states in the United States; 7 provinces in Canada; and in Austria, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, the United Kingdom, China, Argentina, Brazil, and Australia. Staples, Inc. was founded in 1985 and is based in Framingham, Massachusetts. |
Publicly traded companies mentioned herein: Amazon.com (AMZN), Best Buy, Inc. (BBY), GameStop Corp. (GME), Office Depot (ODP), Staples, Inc. (SPLS)
Highlights
The presenter is short shares of Staples (SPLS) and believes the office products supplier to both commercial and retail customers is likely to disappoint Street analysts over the intermediate-term. One year ago bulls on SPLS were looking past the obvious troubles facing the business, and suggested the Office Depot/ OfficeMax combination would help SPLS gain share; however, this benefit has not been realized and in the fourth quarter of 2013 and first quarter of 2014 comps have gone negative and the pace of decline has accelerated. To add insult to injury, many SPLS stores no longer carry printers or other items in-store, and nearly every product a consumer can buy on the SPLS website can be found on Amazon.com (or other discount consumer electronics websites) for at least 10% cheaper, said the presenter.
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