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Non-Tech : Office Product Stocks - ODP/SPLS/OMX/VKNG/CEXP/OFIS/BOP
SPLS 10.250.0%Sep 28 5:00 PM EST
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To: John Ritter who wrote (207)8/31/1999 1:14:00 PM
From: cardcounter   of 297
 
Anyone: What % of yearly profits does back to school sales account for? I assume it is a significant amount and that those profits will show up in the 3rd quarter. Is there any indication that the 3Q will soften as well?

I dont follow these stocks closely, so any insight is helpful. I don't have a very favorable view of these stocks, but I would like to evaluate if this sector is getting unduly punished for office depot's earnings warning. Is this a good value play or is it fairly valued?

Other thoughts: from a non scientific study of the weekly circulars-- office depot appears to consistently underprice office max. How price sensitive are office product consumers and businesses?

Many office products are sold via catalog orders, esp. to the business end user. Competitive threats: any internet vendor of office products will be able to undercut brick and mortar office supply co's, esp with high volume business users.

I've always been more impressed with office depot vs. office max, but I've never been to a Staples. Finally, I;ve never figured out why these companies sell computers (ie why devote floor space to something that has poor turnover relative to best buy's (for example) computer sales. Who goes to a office supply store to buy a computer?
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