Stock buybacks, another type of investor reward, also are at an all-time low since S&P started keeping tabs on them in 1998's first quarter. For the second quarter this year (the most recent data available), S&P 500 companies spent only $24.2 billion to repurchase their shares, down 72% from $87.9 billion in April-June 2008, and an 86% drop from the record $172 billion spent on buybacks during 2007's third quarter. "At the height of the buyback bonanza," said Silverblatt, "companies spent 180% more on stock repurchases than they did on dividends. Now buyback spending is just half that of dividends." On the bright side, several big companies continued repurchasing their shares. ExxonMobil (XOM) spent the most, $5.2 billion. Wal-Mart (WMT) was second, dishing out $1.9 billion. Other notables were Family Dollar Stores (FDO), Staples (SPLS) and Medco Health Solutions (MHS).

Now capitalism gets frustrated by the endless private-equity firms that keep trying to catch falling knives, from Linens & Things to the Office Depot (ODP) fiasco, where a private-equity firm put in $350 million to keep the chain alive. That's not good news for Office Max (OMX) or Staples (SPLS).

Against the Grain: Sell Office Depot!: Marek Fuchs waves traders away from the Office Depot rally.
Click here to watch the video.

"I see this group moving, but I still like best of breed Staples (SPLS)" ("Mad Money Lightning Round," 4-24-09)

Underperform - Price 18.51 on Jan. 13 by Friedman, Billings, Ramsey

Target: 14. Our Underperform case is that SPLS's core business is highly exposed to small-business trends and general business trends. This points to deeper-than-2001 recessionary trends. A more recent small-business data point: Wal-Mart 's Sam's Club division December sales missed expectations at a 0.1% comp; and WMT reported pressures amongst small-business customers, where negative office-supply sales at Sam's decelerated sequentially from November to December. SPLS generates roughly 47% of its total pro forma sales from small-business customers (likely 70% of total profits, as they are the highest-profit-margin customers). SPLS has reiterated $300 million in merger synergies from its August. 2008 acquisition of Corporate Express (CXP). We contend that it overpaid at 10.3 times the then [long-term] Ebitda. Net EPS accretion in 2009E [looks] marginal, at best -- not nearly enough to offset the softness in the core businesses of both. The Street expects SPLS to revisit peak EPS of $1.42 in 2009E, which looks far-fetched, given the environment. We reiterate our Underperform, with the stock at 14.9 times our below-consensus 2009E EPS estimate of $1.24. Market cap: $12.9 billion.

Cramer: Staples is the Only Game in Town: Compared to its competitors, Staples is the last man standing, says Cramer.
Click here to watch the video.

Staples (SPLS) also seems too high to me. If you are buying Staples, it is because you think the others in the category are going under. This is not a Circuit City situation.

The office supply retail chain was among the most active names on the Nasdaq Tuesday.

They are the best office supply company in the world!

Staples (SPLS) was upgraded to Buy rating from Hold at Jefferies. Price target lifts to $28 from $21 while FY09 eps estimates hold at $1.41.

Think ODP it class of the field.

Cramer thought it was a good idea...pfft.