Against the Grain: Sell Office Depot!: Marek Fuchs waves traders away from the Office Depot rally.
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"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.
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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.

Staples, Katz argues, is the "best-in-its- class office superstore" and is navigating the economic slowdown better than Office Max (OMX) or Office Depot. The fund manager believes that Staples will earn $1.69 in 2009, versus an expected $1.52 this year. Staples is trying to buy Amsterdam-based Corporate Express. If the deal bears fruit, it would add to Staples' global reach and could help its stock, recently at 22, climb to 31 in a year, he says.

Green Fashion: No More Wire Hangers!
The Talented Blonde, Kristin Bentz, shows you how green is the new black when it comes to fashion.

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Think ODP it class of the field.

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