Staples, Inc. (NASDAQ:SPLS)

Staples has complete control of the office supplies sector so any uptick in business start ups or the economy will surely impact Staples positively. Also #2 in online sales only to Amazon. Add to that free next day delivery on 98% of online items and you will have a hard time finding a stronger company. And i did i mention they pay nearly a 4% dividend! BUY

I do like them, I just like Amazon better

Brick and mortar office supply store cannot compete with Internet retailers.

OfficeMax and Office Depot merger could allow for more market share for Staples

Driven to innovate at every level, Staples is poised to compete in the office supply market, even though Amazon has a large market share

Oh look a discount!

Household name selling for low PE. Restructuring to take advantage of changing marketplace.

Big box store that is losing to online options like Amazon. As the saying goes, trade what you see. I've been to my local stores a few times lately and there is never a large customer presence.

Potential takeover candidate with high cash flow and a low valuation. If it is acquired, shareholders could be looking at about a 50% upside. Even if it's not, shares still trade at extremely conservative multiples not seen in years.

http://www.fool.com/investing/general/2012/09/26/another-bricks-and-mortar-biz-biting-the-dust.aspx

Staples is the best of the last office supply chains, if any of them are going to survive, it's this one. THe only thing that can totally kill it is Amazon free next-day shipping.

Having visited SPLS recently for school supplies, I think that their business is actually pretty good. They were annoyingly packed with customers.
Given the cyclical nature of the economy, Staples business may be in the early stages of an uptrend.

convinced by kelbon

Easy button...

Staples is pretty bizarre in how its stock price continues to go down despite being a solid company, the exact opposite way Chipotle's had been going in the past couple of years until the recent plunge. SPLS continues to see increasing revenues and earnings but at the same time, has been in a freefall drop for the past couple of years. As of today its valuation ratios are around 5 year lows and it continues to lead the office products industry. Just how long can this thing go?

Well, time to go restock on notebooks and pencils for college. As long as stationary is still relevant to society, these guys aren't going anywhere

Too cheap to ignore after a 15% haircut.

Staple's seems to be priced for the worse case scenario - even considering their current bad bets in Europe.

http://wiki.fool.com/The_Graham_Number
Formula: Fair value=Sqrt(22.5*EPS*BV) I expanded it a little by also using EPS Normalized and Tangible BV
My current Graham Number Valuation Range for SPLS: $10.88 to $17.99
Figures derived from current Scottrade research data. This is all to get a relative value.
Even though the low range is below the current price, the potential upside of 41% is tempting me.
I also like the current annual dividend yield of 3.47%
It's sustainable with a low payout ratio of 28.9%
During the "Great Recession" they went from an annual payout to a quarterly payout and have raised the divi 4 times since.
A low P/E of 9.1x and P/E Normalized of 9.3x also influenced my choice.

Way below graham number.

Second largest online retailer, without the Amazon valuation. Unique model of box stores, online retailing, and sales force. Nice branding and advertising with the "Staple Button". Shows me the money in a hyper competitive environment and one of the worst economy in years.

Cyclical
5yr Sales 6.62%
5yr Earning 0%
5yr ROE 14%

Valuation Assume
Current Sales $25 Billion
Adjust Margin 5%
8% Growth Sales
15% Cost Of Capital

Fair Price $11.00