Staples, Inc. (NASDAQ:SPLS)

NetscribeRetail (95.38) Submitted: 1/8/2007 1:57:02 AM : Start Price: $23.70 SPLS Score: -43.01

Staples is the world’s leading office products retailer selling office supplies and services, business machines, computers and peripherals, and office furniture through approximately 1,800 superstores, and Internet operations. It generates revenues from three business segments: North American Retail contributing 56%, North American Delivery sharing 31%, and International operations the balance, spread across 21 countries.

The office products retailers operate in a highly fragmented market, as the top three leading retailers, Staples, Office Depot, and OfficeMax, account for just 10.5% of total industry sales, with consistent modest secular growth driven by small-business and home-office growth. The North American Retail and Delivery business will notice an increase due to additional 54 stores during the current year and the company plans an additional $500 million of capital expenditure.

Office products retailing is growing to be a world wide specialty retailing giving the existing players a competitive advantage in terms of operational experience. Europe has proven to be growth market with UK, Germany and France having a lion’s share, while China is proving to be a market with superior growth given the comprehensive rise in business activities. The company has taken benefit of such a business environment by turning around its operations in UK in FY 2005, which was caused due to problems in the supply chain management, and expanding its retail operations in the Chinese market.

In line with the market expansion, Staples Inc. has been posting a consistent increase in sales and operating margins for the past five years. Moreover, there has been an 18% surge in operating margins for nine months ended October 2006 on a y-o-y- basis. The North American business, which contributed approximately 85% to sales growth in 2006, will receive a boost given the new store openings and capex. The management expects to increase total sales by approximately 15% for FY 2008. The Chinese market, which forms a small piece of international operations i.e. $100 million in sales, has a potential of very rapid growth. Given the above situation and the company’s competitive advantage there are substantial reasons to believe that Staples Inc would prove to be an outperformer.

Ricksta121 (< 20) Submitted: 12/13/2006 3:44:12 PM : Start Price: $24.25 SPLS Score: -43.11

I know how the place works, I used to work there. Without a doubt will hit 30x10.

closer10 (42.81) Submitted: 11/30/2006 8:22:51 PM : Start Price: $23.23 SPLS Score: -42.04

Staples will be a high growth stock. Unlike Officemax, Staples is still in a big growth phase and is priced moderately low. It's a buy.

timgh1 (< 20) Submitted: 11/28/2006 4:29:41 PM : Start Price: $23.47 SPLS Score: -43.33

This is a best of breed company with excellent, consisiten execution. They have publicly announced their intention to be a $30B company by 2010, a $10B increase over today's numbers. Also, investors do not seem to see SPLS as "sexy" like their competitors, ODP and OMX, who have had their share of issues. ODP appears to be turning around, OMX, in my opinion is simply a laggard. SPLS is clearly ahead of the crowd and even if ODP fixes all their issues they will continue to only "chase" SPLS.

purepour (61.92) Submitted: 11/25/2006 11:23:37 AM : Start Price: $23.33 SPLS Score: -42.52

staples has been outperforming the market for 18 months and will continue

bingocards (44.87) Submitted: 11/22/2006 7:35:49 AM : Start Price: $23.74 SPLS Score: -43.06

An excellently managed company which combines a strong brand presence, good supply chain management, and strong subunit production (Quill Office Supplies, etc).

Haise (57.82) Submitted: 11/15/2006 12:28:40 PM : Start Price: $23.92 SPLS Score: -44.13

Even though the valuation is rich, well-managed companies like this one don't get cheap unless something goes wrong. I also don't expect must P/E expansion, but based on EPS growth alone the stock should outperform the market over the next year.

peigler (62.27) Submitted: 11/12/2006 5:45:01 AM : Start Price: $24.11 SPLS Score: -45.84

Best office supply chain in US.

bsteiner85 (< 20) Submitted: 11/9/2006 10:00:44 PM : Start Price: $23.64 SPLS Score: -44.77

This company is highly growth oriented and the holiday season is quickly approaching. I see this company doing well this holiday.

afb1976 (39.46) Submitted: 10/20/2006 11:47:32 PM : Start Price: $23.49 SPLS Score: -45.59

Staples is undervalued in the office supply sector, as compared to Office Depot and OfficeMax.

regnig (90.18) Submitted: 10/20/2006 2:53:42 PM : Start Price: $23.53 SPLS Score: -45.52

Staples is undervalued as compared to the other office supply companies (e.g.Office Max, Office Depot). Like their international reach and believe Staples will nearly double in price within 12-16 months.

mikeke1 (69.04) Submitted: 10/18/2006 6:12:34 PM : Start Price: $24.02 SPLS Score: -47.02

UNDERVALUED

mikebboylan (< 20) Submitted: 10/4/2006 11:15:56 PM : Start Price: $23.69 SPLS Score: -47.35

Largest supplier of office supplies and equipment to corporations, small business and individuals. Room to expand into Southwest and West.

BostonKate (61.99) Submitted: 9/20/2006 7:00:52 PM : Start Price: $22.86 SPLS Score: -46.72

Clean, well-lit, always stocked, and reasonably informed and helpful staff: Staples outperforms Office Max and Office Depot by a mile in consumer experience. Staples seems to have overcome its senior management issues of the last few years, and continued attention to branding, reliability, and physical location make it an excellent choice in a low-overhead sector.

NJBeachBum (93.79) Submitted: 9/7/2006 3:16:29 PM : Start Price: $21.05 SPLS Score: -45.03

trading at the lower end of its PE range, bucked the distribution day yesterday (9/6) with a gain on higher volume. Well run, steady double digit growth figures for the last 8 Qtrs.