Staples Inc. Value in Office Supplies?
Last Wednesday, Staples Inc. (SPLS-Q) reported lower-than-expected quarterly results on higher costs and weak demand for office supplies. Shares plummeted from the previous day close of $19.65 to $16.63, a decline of 15.4%. Since Wednesday, shares have already climbed over the $17.00 level. Staples is not an unprofitable business, far from it. According to a recent Globe and Mail article, Staples profit rose to $198.2-million, or 28 cents a share, in the first quarter. However, analysts on average were expecting 32 cents a share. With big blue chip dividend payers and dividend aristocrats hitting their 52 week highs, there haven’t …