Use access key #2 to skip to page content.

dpdoor (37.43)

Office Depot if they go bankrupt

Recs

3

August 13, 2009 – Comments (4)

[This is part of a SEC filing for ODP, has anyone read it?

It has sentences that take up more then a page buried 14 pages down, so I figure they were trying to hide something. ]

 (ii) if the Company commences a voluntary bankruptcy, consents to the entry of an order against it in an involuntary bankruptcy, consents to the appointment of a custodian for all or substantially all of its property, makes a general assignment for the benefit of creditors or changes its primary business, (iii) if our common stock ceases to be listed for trading on any of the Nasdaq Global Select Market, the Nasdaq Global Market or the NYSE without the                            Page 14 of 27

simultaneous listing on another of such exchanges or (iv) the primary business of the Company and its subsidiaries ceases being the business of the sale of office products

4 Comments – Post Your Own

#1) On August 14, 2009 at 12:41 AM, checklist34 (99.73) wrote:

it sounds like something thats kind of some standard "cover all the bases" disclamatory language.

I don't think ODP is an acute bankruptcy risk

Report this comment
#2) On August 14, 2009 at 8:21 AM, gembree (99.89) wrote:

Standard boilerplate.

Despite the mass freakout that drove the price under $0.60, ODP has never been at much risk of bankruptcy.

Report this comment
#3) On August 14, 2009 at 11:05 AM, russiangambit (29.41) wrote:

> Despite the mass freakout that drove the price under $0.60, ODP has never been at much risk of bankruptcy

It is a company that lost 1.5 bil last year and is going to loose more this year. And we don't know when it will become profitable.

What is their competetive advantage exactly vs. Walmart or Target? 

They have inventories of 1 bil on their books while their sales are about 2 bil a year. This seems high to me, which means nobody is shoppig there.

May be it is not an immidiate bankruptcy risk but is a good of an investment as GM. They should downsize instead of continuing to loose money.

 

Report this comment
#4) On August 14, 2009 at 12:44 PM, dpdoor (37.43) wrote:

Remember when there was only one small stationary store in town, now there is Staples, Office Max, and Office Depot. With fewer employees business have plenty of extra chairs, desk and computers. If a chair breaks you have one form the guy you laid off. So the big office suppliers are going to have to make it on ink and paper. That’s a lot of stationary. There only hope is investors.

Report this comment

Featured Broker Partners


Advertisement