1-Star Stocks Poised to Plunge: Office Depot?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office-supply retailer Office Depot (NYS: ODP) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Office Depot's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Boca Raton, Fla. (1986)|
|Market Cap||$459.1 million|
|Trailing-12-Month Revenue||$11.4 billion|
|Management||Chairman/CEO Neil Austrian|
CFO Michael Newman
|Return on Equity (average, past 3 years)||(10.4%)|
|Cash/Debt||$488.8 million / $678.3 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 617 members who have rated Office Depot believe the stock will underperform the S&P 500 going forward.
This is one of those dead business model shorts (Blockbuster comes to mind) that you could see coming from a mile away and. I kick myself for missing out on this one in real life. ...
Yes they are trading for near their cash value. But they are burning through cash at an incredible rate. ...
Advertising is theoretically supposed to drive revenue. I am not seeing this NASCAR sponsorship equating to driving the revenue line. Take a look at the sales numbers if you so desire.
Overall this is a dead long term business model. [A]s Bob Dylan Said "the times are a changing"
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The article 1-Star Stocks Poised to Plunge: Office Depot? originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Staples. Motley Fool newsletter services have recommended buying shares of Staples. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.