Walletpop (our sister site) blogger, Geoff Williams recently examined a new marketing strategy undertaken by Staples Inc. (NASDAQ: SPLS). The company wants to make you and your office "fashionable". Unfortunately, it appears that it has hired the wrong marketing firm to handle the task.
I cite as example this one whimsical little marketing blurb from Geoff's blog post. In attempting to get you to purchase fashionable binder clips, Staples has this to say about some retro look clips they have to offer: "It's the look of a bygone era with a decidedly modern flair."
Are they kidding? Does Staples think it's marketing argyle knee socks?
There's a whiff of desperation when a company completely departs from common sense in advertising. Personally, I have no use for toner cartridges which compliment my eyes. If the day ever comes when Staples begins to offer office mail carts with ground effects and spinner rims, I'd say we're just one baby doll lab coat away from seeing Staples close it's doors.
Gary Sattler is a freelance blogger. He does not knowingly have investment interest in the companies mentioned in this blog post
MOST NOTEWORTHY: Staples, Evergreen Solar and Genzyme were today's noteworthy upgrades:
Jefferies upgraded shares of Staples (NASDAQ: SPLS) to Buy from Hold following the company's raised bid for Corporate Express based on the increased chance the deal gets deal done and SPLS achieves meaningful EPS accretion.
Jefferies also raised Evergreen Solar (NASDAQ: ESLR) to Buy from Hold on valuation, as they believe concerns regarding capital needs are now priced into the stock and that the company continues to take risk out of its growth story through execution.
Bernstein upgraded Genzyme (NASDAQ: GENZ) to Outperform from Market Perform citing increased confidence in GENZ's product portfolio, geographic and therapeutic diversification, improved outlook, and valuation.
OTHER UPGRADES:
Sun Microsystems (NASDAQ: JAVA) was raised to Outperform from Market Perform at Wachovia.
BearingPoint (NYSE: BE) was upgraded at Goldman to Neutral from Sell.
Lehman upgraded Nexen (NYSE: NXY) to Overweight from Equal Weight.
Oppenheimer & Co reiterated its "outperform" rating on STEC (NASDAQ: STEC) saying that "We remain bullish on STEC's unfolding solid state drive (SSD) story and see further room for shares to run," according to the AP.
Wachovia upgraded Sun Microsystems (NASDAQ: JAVA) from "market perform" to "outperform," according toBriefing.com The news service also writes that Bernstein has downgraded EDS (NYSE: EDS) to "market perform" to "outperform."
Gas Crunch Hits Home The record-high price of gasoline is putting a strain on American motorists - and spurring some to shift their habits. Here are their stories. America's Money: Gas crunch hits home - CNNMoney.com
12 Ways to Make Your House a Cash Cow Want to earn some extra cash? Turn your home into a money-making machine. As times get tighter, many are looking for ways to save. Here are offbeat ways to bring in cash without leaving home. These include take in renters, have yard sales, throw party sales or share your garage. 12 ways to make your house a cash cow - Bankrate.com
Staples (NASDAQ: SPLS) stepped up its hostile campaign to acquire Dutch office supplies group Corporate Express (NYSE: CXP), lifting its offer to 8 euros ($12.43) a share, up from 7.25 euros previously and taking its bid directly to shareholders. CXP shares were 6% higher.
In its attempt to shore up its balance sheet, American International Group Inc. (NYSE: AIG) priced an offering of 171.1 million common shares at $38, valuing the deal at $6.5 billion. On Monday AIG also said it priced an offering of 72 million equity units at $75 each, a deal value of $5.4 billion.
LDK Solar Co. Ltd. (NYSE: LDK) shares are down over 6% in premarket trading after the Chinese solar energy company reported first-quarter results late Monday. While earnings topped forecasts and the company raised its revenue outlook for the year, raw material costs caused it to cut its gross margin forecast.
Sirius Satellite Radio Inc. (NASDAQ: SIRI) also reported results after closing bell Monday. While the results are important, they don't have the weight they would had the Street not expected Sirius to complete the purchase of larger rival XM Satellite Radio Holdings Inc. (NASDAQ: XMSR). Both companies reported more losses, although Sirius narrowed its loss, while at XM, the loss increased. This may be the reason why StreetInsider says that Merrill Lynch upgraded Sirius from Sell to Neutral. Interestingly, though, XM shares climbed Monday following its results, while SIRI shares are down in premarket trading following its.
Readers of this space know that, given the uncertainties regarding U.S. economic growth, household formation, and job creation, the retail sector is to be avoided. Still, there are exceptions -- particularly when the fundamentals suggest it's a decent time to get-ahead-of-the-pack with a company -- and with the aforementioned in mind, Staples is worth a review.
In general, analysts don't forecast anything spectacular about Staples, Inc. (Nasdaq: SPLS) FY 2009 North American retail sales, which should decline 1-3%
Still, there are bright spots that provide cause for hope: strong results from the North American delivery division's Chicago, Denver and Miami regions point to untapped domestic metropolitan area opportunities.
Further, margins should widen as SPLS's ramping private-label business comprises a larger percentage of sales.
Office Depot (NYSE: ODP) is urging shareholders to reject the efforts of Levitt Corp. (NYSE: LEV) and Woodbridge Equity Fund to elect two of their nominees to the company's board of directors at the company's April 23rd annual meeting. The investors, who own about 1% of the company, are seeking to replace the company's current CEO and chairman and its former CEO and chairman; they have nominated the company's former COO and the former president of Staples (NYSE: SPLS) to replace them.
In a press release, the company said that it "believes that removing two of the most experienced retailing executives from the Office Depot Board would be highly disruptive, and could destabilize the Company and damage prospects for a successful turnaround. The Board has a strong long-range plan that is in the process of being implemented under difficult macroeconomic conditions."
As with many situations like this, the chart tells the story. Over the past 10 years, Office Depot has lost nearly 50% of its value while Staples has more than doubled in value. Obviously the current strategy is a failure, and the "experienced retailing executives" have destroyed billions of dollars in shareholder value. They might as well give someone else a shot and, if these directors should be opposed, the opposition shouldn't come from a board of directors with a horrendous track record.
Staples (NASDAQ:SPLS) cut to "neutral" at Goldman Sachs according to24/7 Wall St. The website also reports that JC Penney (NYSE:JCP) and Nordstom (NYSE:JWN) were raised to "buy" at Goldman Sachs
Staples Inc. (NASDAQ: SPLS), a supplier of office products and a fierce competitor of both OfficeMax (NYSE: OMX) and Office Depot (NYSE: ODP), reported earnings for the fourth quarter yesterday. Excluding an extra calendar week, Staples saw its net sales rise by 8% to $5.3 billion and its diluted earnings per share rise by 15% to $0.47. For the full year, again excluding the extra week, net sales increased 9%; adjusted diluted earnings per share rose by 15%, coming in at $1.42. The full-year results included various adjustments related to tax issues, litigation, and stock compensation.
The numbers are okay, I suppose, but they don't necessarily make me want to jump into the stock. For one thing, same-store sales for North America declined 3% for the year (they did rise a modest 2% in Europe, however). For another, the stock is only yielding about 1.5% right now -- I'd wait for a bigger yield before thinking about Staples. Yes, it's true that the company increased its annual dividend by 14%, but I'll tell you something about that -- I am not a fan of annual dividends. I'd rather get my payout spread throughout the year.
Staples is a major brand in office supplies, and I do shop there. But nothing about this earnings report makes me want to check the retailer out any further, at least at this time. I'll have to see a few more quarters to see how the company handles the current economic malaise; for now, there are better ideas out there for one's investment dollars.
Top 10 Stocks Since Last Recession Now that it looks like we're headed into an economic downturn, we asked ourselves, "What types of companies do we want to own?" To help you answer that see what stocks have excelled since our last recession in 2001. They include Apple, Research in Motion, Ultra Petroleum, Guess? and Intutitive Surgical to name a few. The Top 10 Stocks Since the Last Recession - Fool.com
More People File Tax Returns Early, More E-File More than 38 million Americans filed electronic federal tax returns in the first two months of the year, a 5% increase from 2007, the IRS said Monday in the first statistics of this tax season. Filers who prepared their own taxes and transmitted them from home computers accounted for more than 12.3 million of the electronic returns, up nearly 14% from last year. More people file tax returns early, more e-file - USATODAY.com
Bankruptcies Make Gift Cards Worthless You know that Sharper Image gift card you got for Christmas? Right now, it's worthless. And other gift cards in your wallet could lose their value, too. Bankruptcy makes gift cards worthless - Marketwatch
U.S. stock futures were lower early this morning, pointing to another down day after chipmaker Intel warned on memory-chip prices and cut its profit forecast. On a day with little economic data coming out, investors will focus their attention to a speech from Federal Reserve chairman Ben Bernanke.
On Monday, stocks slogged along as the dollar weakened and two economic readings pointed to a slowing economy.The Dow Jones Industrial Average fell 7 points, or 0.06%, and the Nasdaq Composite gave up over 12 points, or 0.57%, while the S&P 500 managed less that a point rise, or 0.05%.
Fed chairman Bernanke is scheduled to speak at an Independent Community Bankers of America meeting in Orlando at 9:00 a.m. EST this morning. Bernanke will speak about the subprime crisis and preventing foreclosures. The Fed is scheduled to have a policy meeting on March 18 where monetary policy will be decided.
Staples, Inc. (NASDAQ: SPLS) wants to buy the largest global supplier of office supplies to enhance its most profitable division. That company, Corporate Express, doesn't seem interested in Staples' offer, calling the U.S. retailer's $3.6 billion unsolicited offer inadequate and "significantly undervalues the company."
Corporate Express, based in Amsterdam, saw its shares trading above Staples' offer price once the bid was announced, signaling that investors expect a much larger offer price for the office supply company.
Although Staples knows all too well that U.S. regulators would probably not approve the acquisition of a U.S.-based retailer (its attempt to buy Office Depot in 1997 failed), Corporate Express is a smart move. The company does half its business in the U.S. already, and acquiring it would give Staples a much-improved delivery business in the U.S.
Sanford & Bernstein analyst Colin McGranahan said "the potential synergies could make this very accretive" to earnings. McGranahan then indicated that Staples' management team is conservative and smart, and that a higher office price could make things more difficult. Reading between the lines, then, Staples may not up its offer even though it's been rebuffed by Corporate Express.
Washington Mutual Inc. (NYSE: WM) reported a fourth quarter $1.87 billion loss, hurt badly by the sinking value of its mortgage portfolio. The quarterly loss was $2.19 per share, compared with a profit of $1.06 billion, or $1.10 per share in the same period last year. WaMu shares are up 2.3% in premarket trading.
Schlumberger (NYSE: SLB) said Friday profit rose 22% in the fourth quarter due to strong demand for oilfield services. The results were below Wall Street estimates and the shares are down over 3% in premarket trading. Earnings rose to $1.38 billion in the fourth quarter, or $1.12 per share, on revenue of $6.25 billion. Excluding a gain, the company's earnings rose to $1.37 billion, or $1.11 a share. Analysts polled by Thomson Financial had expected fourth-quarter earnings of $1.13 per share on revenue of $6.14 billion.
Walletpop (our sister site) blogger, Geoff Williams recently examined a new marketing strategy undertaken by Staples Inc. (NASDAQ: SPLS). The company wants to make you and your office "fashionable". Unfortunately, it appears that it has hired the wrong marketing firm to handle the task..gif){kind=logo}
In a press release, the company said that it "believes that removing two of the most experienced retailing executives from the Office Depot Board would be highly disruptive, and could destabilize the Company and damage prospects for a successful turnaround. The Board has a strong long-range plan that is in the process of being implemented under difficult macroeconomic conditions."
.gif){kind=logo}
Washington Mutual Inc. (NYSE: 
Just how high will U.S. gasoline prices rise?
Nordstrom and Kohl's post smaller-than-expected Q1 profit declines
Oil hits record $127.43 on supply concerns, raised Goldman forecast
